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Question 13 3 pts The Pritchett Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West Sales Variable costs
Question 13 3 pts The Pritchett Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West Sales Variable costs Traceable fixed costs Allocated common corporate costs Net operating income (loss) $500,000 200,000 150,000 135,000 $ 15,000 $550,000 275,000 180,000 170,000 $( 75,000) The management of Pritchett is considering the elimination of the West division. If the West division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West division would result in an overall company net operating income (loss) of: ($155,000) ($60,000) $15,000 ($75,000)
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