Burger World is a restaurant with 3 different restaurant locations: Atlanta, Boston, and Seattle. The company allocates common fixed costs equally to each location. The company's total operating Income during the year 2015 was $218.000. Information about the restaurant locations from the year 2015 follows: Atlanta $300,000 $210,000 Traceable Fixed Costs $86,000 Common Fixed Costs $14.000 Total Operating Income -$10,000 Total Sales Total Variable Costs O $214,000 O $222,000 O $226,000 O $236,000 Boston $500,000 $200,000 $40,000 $14.000 $246,000 Suppose that the Seattle restaurant location were eliminated at the beginning of the year 2015. That is, assume that during the year 2015 the company only had the Atlanta and Boston restaurant locations. What would total operating income have been for the year 2015? O None of the above Seattle $210,000 $150,000 $64,000 $14.000 -$18,000

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Chapter1: Financial Statements And Business Decisions
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Burger World is a restaurant with 3 different restaurant locations: Atlanta, Boston, and Seattle. The
company allocates common fixed costs equally to each location. The company's total operating
income during the year 2015 was $218.000. Information about the restaurant locations from the
year 2015 follows:
Atlanta
$300,000
$210,000
Traceable Fixed Costs
$86,000
Common Fixed Costs $14.000
Total Operating Income
-$10,000
Total Sales
Total Variable Costs
Boston
$500,000
$200,000
$40,000
$14.000
$246.000
O $214,000
O $222,000
O $226,000
$236,000
None of the above
Seattle
$210,000
$150,000
$64,000
$14.000
-$18,000
Suppose that the Seattle restaurant location were eliminated at the beginning of the year 2015.
That is, assume that during the year 2015 the company only had the Atlanta and Boston restaurant
locations. What would total operating income have been for the year 2015?
Transcribed Image Text:Burger World is a restaurant with 3 different restaurant locations: Atlanta, Boston, and Seattle. The company allocates common fixed costs equally to each location. The company's total operating income during the year 2015 was $218.000. Information about the restaurant locations from the year 2015 follows: Atlanta $300,000 $210,000 Traceable Fixed Costs $86,000 Common Fixed Costs $14.000 Total Operating Income -$10,000 Total Sales Total Variable Costs Boston $500,000 $200,000 $40,000 $14.000 $246.000 O $214,000 O $222,000 O $226,000 $236,000 None of the above Seattle $210,000 $150,000 $64,000 $14.000 -$18,000 Suppose that the Seattle restaurant location were eliminated at the beginning of the year 2015. That is, assume that during the year 2015 the company only had the Atlanta and Boston restaurant locations. What would total operating income have been for the year 2015?
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