The Cook Corporation has two divisions-East and West. The divisions have the following revenues and expenses: East West $590,000 S 456,500 232,000 144,000 151,200 $ 62,800 S(186,700) Sales Variable costs 294, 300 160, 200 188, 700 Traceable fixed costs 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 company net operating income (loss) of Multiple Choice $62.800 S25.900) Sr86.700) S123,900) O O O

The Cook Corporation has two divisions-East and West. The divisions have the following revenues and expenses: East West $590,000 S 456,500 232,000 144,000 151,200 $ 62,800 S(186,700) Sales Variable costs 294, 300 160, 200 188, 700 Traceable fixed costs 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 company net operating income (loss) of Multiple Choice $62.800 S25.900) Sr86.700) S123,900) O O O

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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I just need d) answered. A, B,and C have been answered.
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7)
Your Corporation has two divisions: A Division and B Division. The corporation's net operating income is $31,800. The A Division's divisional segment margin is S111,800 and the B Division's divisional segment margin is $152,800. What is the amount of the common fixed expense not traceable to the individual divisions? O $121,000 O $232,800 O $ 80,000 O $296,400