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The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses South North 900,000 $800,000 300,000 210,000 0,000 Sales Variable
The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses South North 900,000 $800,000 300,000 210,000 0,000 Sales Variable expenses Traceable fixed expenses Allocated common corporate expenses.. Net operating income (loss) 450,000 260,000 240,000,o $(50,000) $100000 Management is pondering the elimination of the North Division. If North Division were eliminated, its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected. Given these data, the elimination of North Division would result in an overall company net operating income of $100,000 $(140,000) $50,000 $150,000
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