Mason Transport Company divides its operations into four divisions. A recent income statement for its West Division follows.

MASON TRANSPORT COMPANY West Division Income Statement for the Year 2015
Revenue	$	250,000
Salaries for drivers		(175,000	)
Fuel expenses		(25,000	)
Insurance		(35,000	)
Division-level facility-sustaining costs		(20,000	)
Companywide facility-sustaining costs		(65,000	)
Net loss	$	(70,000	)

Required:

a-1.	By how much would companywide income increase or decrease if West Division is eliminated?

a-2.

Should West Division be eliminated?

	Yes
	No

b-1.	Assume that West Division is able to increase its revenue to $270,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income.

b-2.

Should West Division be eliminated if revenue were $270,000?

	Yes
	No

c.	What is the minimum amount of revenue required to justify continuing the operation of West Division?