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A Corporation has two divisions--East and West. The divisions have the following revenues and West Sales East $500.000 Variable costs $550.000 200.000 275.000 Traceable fixed

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A Corporation has two divisions--East and West. The divisions have the following revenues and West Sales East $500.000 Variable costs $550.000 200.000 275.000 Traceable fixed costs 150.000 180.000 Allocated common corporate costs 135.000 170.000 Net operating income (loss) $15.000 $175.000 Management is considering the elimination of the West Division. If the West Division were eliminated strom could be avoided. Total common corporate costs would be unaffected by this decision. Given these date West Division would result in an overall company net operating income (loss) ot. $15.000 ($75.000) (5155,000) ($60,000)

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