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Please answer with explamation 6 Zachary Transport Company divides its operations into four divisions. A recent income statement for its West Division follows: ZACHARY TRANSPORT
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6 Zachary Transport Company divides its operations into four divisions. A recent income statement for its West Division follows: ZACHARY TRANSPORT COMPANY West Division Income Statement for the Year 2019 690,000 (540,e00) (69,ee0) (89,e00) Revenue Salaries for drivers Fuel expenses Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs (149,000) ook int (59,e00) int nces Net loss $(216,e00) Required a. By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eli b. Assume that West Division is able to increase its revenue to $780,000 by raising its prices. Determine the amount of the ind decrease that would occur in companywide net income. Should West Division be eliminated if revenue were $780,000? c. What is the minimum amount of revenue required to justify continuing the operation of West Division? o searchStep by Step Solution
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