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A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $17.000 indicates that Dept. Y

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A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $17.000 indicates that Dept. Y had a direct expense of $1,800 for deliveries and Dept. Z had no direct expense. The Indirect expenses are $15,200. The analysis also indicates that 45% of regular delivery requests originate in Dept. Yand 55% originate in Dept. Z. Departmental delivery expenses for Dept. Yand Dept. 2, respectively, are: Multiple Choice $7,560: $11,050 $5.950: $11,050 $8.640:58,360 $7,650: 59.350 $7.560; $9,170 50 Valdez Company is considering eliminating its tchen division, which reported an operating loss of $64,000 for the past year. Kitchen division sales for the year were $450,000, and its variable costs were $786,000. The fixed costs of the division were $330,000. If the kitchen division is dropped, 77% of the feed costs allocated to it could be eliminated. The impact on Valdez's operating income from eliminating this business segment would be: 8004134 Multiple Choice $120.700 decrease $266,000 increase $42010 dece $129.700 case $266.000 decrease

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