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Question 1 (9 points) The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: Sales Variable costs East
Question 1 (9 points) The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: Sales Variable costs East West Total 1,200,000 800,000 2,000,000 610,000 450,000 1,060,000 Traceable fixed costs 130,000 290,000 420,000 Allocated common corporate costs 210,000 180,000 390,000 Net operating income (loss) 250,000 (120,000) 130,000 Assume traceable fixed costs are avoidable. In other words, if a division is discontinued, so too are its traceable fixed costs. What would the overall company net operating income (loss) be if Cook discontinued the West Division? In your answer, indicate whether your number is positive net operating income or an operating loss. A
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