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the armory corporation has two divisions east and west. the division ls have the following revenues and expenses The Armory Corporation has two divisions--East and
the armory corporation has two divisions east and west. the division ls have the following revenues and expenses
The Armory Corporation has two divisions--East and West. The divisions have the following revenues and expenses: Sales Variable costs Traceable fixed costs Allocated common corporate costs Net operating income (105) East West $580,000 $ 474,000 180,000 229,300 172,500 208,000 114,800 177,800 $112,700 $(141,100) The management of Armory 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 S(141300) O $112,700 Step by Step Solution
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