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The King Company has two divisions-North and South. The divisions have the following revenues and expenses Sales Variable expenses Traceable fixed expenses Allocated common corporate
The King Company has two divisions-North and South. The divisions have the following revenues and expenses Sales Variable expenses Traceable fixed expenses Allocated common corporate expenses Net operating Income foss) North $985,000 467.000 277,000 274,000 $ 33,000) South $970,000 385.000 227,000 207.000 $ 151,000 Management at King is pondering the elimination of North Division. If North Division was eliminated, its traceable fred expenses could be avoided. The these data, the elimination of North Division would result in an overall company net operating income of O O $151,000 $33,000 $1123,000). $184,000
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