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Pioneer Corporation currently has two divisions which had the following operating results for last year. Sales Variable costs Contribution margin Traceable fixed costs Allocated
Pioneer Corporation currently has two divisions which had the following operating results for last year. Sales Variable costs Contribution margin Traceable fixed costs Allocated common corporate fixed. costs Net operating income (loss) $ Alex Paige Division Division 600,000 $630,000 250,000 396,000 Company Total 5 1,230,000 646,000 350,000 234,000 584,000 160,000 153,000 313,000 80,000 108,000 188,000 $ 110,000 $ (27,000) 83,000 Because the Paige Division sustained a loss, the president of Pioneer is considering the elimination of this division. All of the division's traceable foxed costs could be avoided if the division was dropped. None of the allocated common corporate fixed costs could be avoided. If the Paige Division was dropped at the beginning of last year, the financial advantage (disadvantage) to the company for the year would have been indicate the financial disadvantage with a "-" sign in front of your numeric answer):: Numeric Response
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