Marcus company is evaluating its two divisions, West Division and East Division. Data for the West Division include sales of $530,000, variable cost of $290,000 and fixed cost of $260,000, 50% of which are traceable to the division. East divisions efforts for the same time period include sales of $610,000, variable cost of $340,000 and fixed costs of $290,000, 60% which are traceable to the division.

Should either of the divisions be considered for elimination? Is there any other problem that needs attention?