Munoz Transport Company divides its operations into four divisions. A recent income

statement for its West Division follows.

MUNOZ TRANSPORT COMPANY

West Division

Income Statement for Year $3$

Revenue

Salaries for drivers

Fuel expenses

Insurance

Division$-$level facility$-$sustaining costs

Companywide facility$-$sustaining costs

Net loss

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 $$670,000$ by raising its prices.

Determine the amount of the contribution to profit by West Division. Should West Division

be eliminated if revenue is $$670,000?$

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.

Assume that West Division is able to increase its revenue to $$670,000$ by raising its prices. Determine

contribution to profit by West Division. Should West Division be eliminated if revenue is $$670,000?$