Perez Company is evaluating its two divisions, West Division and East Division. Data for West Division include sales of $530,000, variable costs of $290,000, and fixed costs of $260,000, 50 percent of which are traceable to the division. East Division’s efforts for the same period include sales of $610,000, variable costs of $340,000, and fixed costs of $290,000, 60 percent of which are traceable to the division. Should Perez Company consider eliminating either division? Is there any other problem that needs attention?