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Stuart Transport Company divides its operations into four divisions. A recent income statement for its West Division follows: -By how much would companywide income increase
Stuart Transport Company divides its operations into four divisions. A recent income statement for its West Division follows:
STUART TRANSPORT COMPANY West Division Income Statement for the Year 2019 Revenue $ 650,000 Salaries for drivers (500,000) Fuel expenses (65,000) Insurance (85, 000) Division-level facility-sustaining costs (55,000) Companywide facility-sustaining costs (145, 000) Net loss $(200, 000) es Required A Required B Required C By how much would companywide income increase or decrease if West eliminated? es Income would by Should West Division be eliminated? Requi ok t Required A Required.se Required C ht ences Assume that West Division is able to increase its revenue to $740,000 increase or decrease that would occur in companywide net income if the eliminated if revenue were $ 740,000? by Income would Should West Division be eliminated? -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 $740,000 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 $740,000? - What is the minimum amount of revenue required to justify continuing the operation of West Division?
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