Rundle Transport Company divides its operations into four divisions. A recent income statement for its West Division follows.

RUNDLE TRANSPORT COMPANY
West Division
Income Statement for Year 3
Revenue	$	620,000
Salaries for drivers		(470,000	)
Fuel expenses		(62,000	)
Insurance		(82,000	)
Division-level facility-sustaining costs		(52,000	)
Companywide facility-sustaining costs		(142,000	)
Net loss	$	(188,000	)

Required

By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated?

Assume that West Division is able to increase its revenue to $690,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segment were eliminated. Should West Division be eliminated if revenue were $690,000?

What is the minimum amount of revenue required to justify continuing the operation of West Division?

Munoz Company, which expects to start operations on January 1, year 2, will sell digital cameras in shopping malls. Munoz has budgeted sales as indicated in the following table. The company expects a 15 percent increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March.

Required

Complete the sales budget by filling in the missing amounts.

Determine the amount of sales revenue Munoz will report on its first quarter pro forma income statement.