5 Exercise 6-15A (Static) Segment elimination decision LO 6-4 28 nts Dudley Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. DUDLEY TRANSPORT COMPANY West Division Revenue Income Statement for Year 3 $ 300,000 (210,000) (30,000) Salaries for drivers eBook Fuel expenses Hint Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs Net loss (42,000) (24,000) (78,000) $ (84,000) eferences Required a. By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able to increase its revenue to $324,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segment were eliminated. Should West Division be eliminated if revenue were $324,000? c. What is the minimum amount of revenue required to justify continuing the operation of West Division? Complete this question by entering your answers in the tabs below. Required A Required B Required C By how much would companywide income increase or decrease if West Division is eliminated? If the segment were eliminated should West Division be eliminated? Income would Should West Division be eliminated? by < Required A Required B > 5 28 ints eBook Hint Exercise 6-15A (Static) Segment elimination decision LO 6-4 Dudley Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. Revenue DUDLEY TRANSPORT COMPANY West Division Income Statement for Year 3 Salaries for drivers Fuel expenses Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs Net loss $ 300,000 (210,000) (30,000) (42,000) (24,000) (78,000) $ (84,000) References Required a. By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able to increase its revenue to $324,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segment were eliminated. Should West Division be eliminated if revenue were $324,000? c. What is the minimum amount of revenue required to justify continuing the operation of West Division? Complete this question by entering your answers in the tabs below. Required A Required B Required C Assume that West Division is able to increase its revenue to $324,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segment were eliminated. Should West Division be eliminated if revenue were $324,000? Income would Should West Division be eliminated? by < Required A Required C > 5 Exercise 6-15A (Static) Segment elimination decision LO 6-4 28 nts Dudley Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. DUDLEY TRANSPORT COMPANY West Division Revenue Income Statement for Year 3 $ 300,000 (210,000) (30,000) Salaries for drivers eBook Fuel expenses Hint Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs Net loss (42,000) (24,000) (78,000) $ (84,000) eferences Required a. By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able to increase its revenue to $324,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segment were eliminated. Should West Division be eliminated if revenue were $324,000? c. What is the minimum amount of revenue required to justify continuing the operation of West Division? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the minimum amount of revenue required to justify continuing the operation of West Division? Minimum amount of revenue < Required B Required C >