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on 38 + ed Carlton Corporation is composed of five divisions. Each division is allocated a share of Carlton's overhead to make divisional managers aware

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on 38 + ed Carlton Corporation is composed of five divisions. Each division is allocated a share of Carlton's overhead to make divisional managers aware of the cost of running the corporate headquarters. The following information relates to the Metro Division: out of 25 question Sales revenue $7,500,000 Variable operating costs 3,100,000 Traceable fixed operating costs 1.900.000 Allocated corporate overhead 300,000 If the Metro Division is closed, 100% of the traceable fixed operating costs can be eliminated What will be the impact on Carlton's overall profitability if the Metro Division is closed? Select one: O a Decrease by $200,000 Ob. Decrease by $500,000 Oc Decrease by $2,100,000 Od. Decrease by $2,400,000 Oe. None of the answers is correct

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