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Franklin Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. FRANKLIN TRANSPORT COMPANY West Division Income Statement
Franklin Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. FRANKLIN TRANSPORT COMPANY West Division Income Statement for Year 3 Revenue 5 5?0,066 Salaries for drivers (420,009) Fuel expenses (5?,0093 Insurance (??,009) Division-level facility-sustaining costs (4?,006) Companywide facilitysustaining costs i13?,0063 Net loss $ C158:@993 Required a. By how much would co mpanywide 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 $630,000 by raising its prices. Determine the amount of the contribution to prot by West Division. Should West Division be eliminated if revenue is $630000? 1:. 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? Should West Division be eliminated? Required B > 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 $630,000 by raising its prices. Determine the amount of the contribution to profit by West Division. Should West Division be eliminated if revenue is $630,000? 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 $630,000 by raising its prices. Determine the amount of the contribution to profit by West Division. Should West Division be eliminated if revenue is $630,000? Income would by Should West Division be eliminated? 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 $630,000 by raising its prices. Determine the amount of the contribution to prot by West Division. Should West Division be eliminated if revenue is $630000? 1:. 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 .0. Required B Required (3 what is the minimum amount of revenue required to justify continuing the operation of West Division? ( Required B
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