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Rooney Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. Required a . By how much would
Rooney Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. Required a By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? b Assume that West Division is able to increase its revenue to $ by raising its prices. Determine the amount of the contribution to profit by West Division. Should West Division be eliminated if revenue is $ c What is the minimum amount of revenue required to justify continuing the operation of West Division?
Rooney Transport Company divides its operations into four divisions. A recent income statement for its West Division follows.
Required
a By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated?
b Assume that West Division is able to increase its revenue to $ by raising its prices. Determine the amount of the
contribution to profit by West Division. Should West Division be eliminated if revenue is $
c What is the minimum amount of revenue required to justify continuing the operation of West Division?
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