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The Queen Company has two divisions-East and West. The divisions have the following revenues and expenses: Sales Variable expenses Traceable fixed expenses Allocated common corporate
The Queen Company has two divisions-East and West. The divisions have the following revenues and expenses: Sales Variable expenses Traceable fixed expenses Allocated common corporate expenses Net operating income (loss) East $905,000 West $810,000 451,000 305,000 261,000 211,000 242,000 191,000 $(49,000) $103,000 Management at Queen is pondering the elimination of East Division. If East Division were eliminated, its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected. Given these data, the elimination of East Division would result in an overall company net operating income of Multiple Choice $152,000. Management at Queen is pondering the elimination of East Division. If East Division were eliminated, its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected. Given these data, the elimination of East Division would result in an overall company net operating income of Multiple Choice $152,000, $103,000 $139,000). $49.000
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