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