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The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses: North South $900,000 $800,000 50,000 300,000 260,000 210,000 Allocated
The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses: North South $900,000 $800,000 50,000 300,000 260,000 210,000 Allocated common corporate expenses...240,000190,000 Net operating income (loS50,000) 5100.000 Sales. Variable expenses raceable fixed expenses 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: $50,000 $100,000 $150,000 $(140,00o)
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