The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses. East West $590,000 $ 456,500 Variable costs 232,000 294,300 Traceable fixed costs 144,000 160,200 Allocated common corporate costs 151,200 188,700 Net operating income (loss) O $(123,900) Sales The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in an overall company net operating income (loss) of: O $62,800 O $(186,700) O $(125,900) $62,800 $(186,700)

The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses. East West $590,000 $ 456,500 Variable costs 232,000 294,300 Traceable fixed costs 144,000 160,200 Allocated common corporate costs 151,200 188,700 Net operating income (loss) O $(123,900) Sales The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in an overall company net operating income (loss) of: O $62,800 O $(186,700) O $(125,900) $62,800 $(186,700)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 costs Net operating income (loss) East $ 550,000 West $489,500 198,000 169,500 117,500 $ 65,000 258,500 194,400 141,100 $ (104,500) The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in an overall company net operating income (loss) of: Multiple Choice $65,000 $(104,500) $(39,500) О $(76,100)
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West $ 585,000 208,000 160,500 131,000 $ 456,500 255,800 172,800 185,300 Sales Variable costs Traceable fixed costs Allocated common corporate costs Net operating income (loss) $ 85,500 $ (157,400) The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in an overall company net operating income (loss) of:
The Cook Corporation has two divisions-East and West. The divisions have the following revenues and expenses: East West $590,000 $ 456,500 232,000 Sales Variable costs 294,300 Traceable fixed costs 144,000 151,200 $ 62,800 $(186, 700) 160, 200 188,700 Allocated common corporate costs Net operating income (loss) The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in a company net operating income (loss) of: Multiple Cholce $62,800 S1125,900) S/186,700) $123,900)
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The Kelsh Company has two divisions North and South. The divisions have the following revenues and expenses: North South Sales $300,000 $400,000 Less Operating Expenses: Variable Expenses 150,000 200,000 Traceable Fixed Expenses 100,000 100,000 Allocated Common Corporate Expenses 75,000 325,000 50,000 350,000 Net Operating Income (Loss) $( 25,000) $ 50,000 Management at Kelsh is pondering the elimination of North Division. If North Division were eliminated, its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected.INSTRUCTIONS Compute the amount of total operating income that would result if Kelsh dropped the North Division. Match each of the following with the correct amount:…
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