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The Cook Corporation has two divisions-East and West. The divisions have the following revenues and expenses. Sales Variable costs Traceable fixed costs Allocated common corporate
The Cook 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 (loss) East West $570,000 $467,500 226,000 222,800 168,880 149,400 129,600 159,800 $ 46, 480 $(64,500) The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed co decision. Given these data, the elimination of the West Division would result in an overall company net operating income foss) of Multiple Choice $46,400 O ${64,500) o oo $(18,100) $(113.400) 57,500 22,800 19,400 -9,800 54,500) Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this company net operating income (loss) of
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