The ABC Corporation has two divisions--East and West. The divisions have the following revenues and expenses:...
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The ABC Corporation has two divisions--East and West. The divisions have the following revenues and expenses: West Sales Variable costs Traceable fixed costs Allocated common corporate costs Net operating income (loss) East $575,000 188,000. $ 490,500 259,500 172,500 122,900 195,400 142,100 $ 91,600 $ (106,500) The management of ABC 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: Multiple Choice $91,600 $(50,500) The ABC Corporation has two divisions--East and West. The divisions have the following revenues and expenses: West Sales Variable costs Traceable fixed costs Allocated common corporate costs Net operating income (loss) East $575,000 188,000. $ 490,500 259,500 172,500 122,900 195,400 142,100 $ 91,600 $ (106,500) The management of ABC 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: Multiple Choice $91,600 $(50,500)
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