Multiple Choice$113,700$(43,300)$(144,000)$(30,300) The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses:SalesVariable costsTraceable fixed costsAllocated common corporate costsNet operating income (loss)East$575,000168,000165,000128,300$ 113,700West$ 507,000301,000193,000157,000$ (144,000)The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could beavoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in anoverall company net operating income (loss) of:

Introduction:- Net Operating Income indicates the health and viability of a business by showing its…

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 overall company net operating income (loss) of:

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 overall company net operating income (loss) of:

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 13E: The condensed income statement for the Consumer Products Division of Tri-State Industries Inc. is as...

See similar textbooks

Related questions

Q: XYZ Co. has an intention to restructure the company. The following costs were determined: P500,000…

A: In the scenario of an organizational restructuring, there are different recognitions and measurement…

Q: Which of the following statements is false? (You may select more than one answer.)a. The same cost…

A: Fixed costs: Fixed costs are those costs which remain unchanged even there is a change in the…

Q: Which of the following statements is true? An avoidable fixed production cost incurred before the…

A: An avoidable fixed production cost incurred before the split-off point in a joint process is…

Q: Harry Haney, manager of the Eastern Division of MertockCo., made the following comment to the…

A: Incremental Analysis: Incremental analysis refers to the analysis of differential revenue that could…

Q: Which of the following situations is most likely to pose a problem for companies that use return on…

A: Return on investment is computed as the average return generated dividend by the investment made in…

Q: Which of the following would be an argument for using the gross cost of plant and equipment as part…

A: Operating assets are the assets of the entity which are acquired for or used in the operations of…

Q: The Southern Division manager of Texcaliber Inc. is growing concerned that the division will not be…

Q: The Furniture Company currently has three divisions: Maple, Oak, and Cherry. The oak furniture line…

A: The discontinuity of a segment of the business can be evaluated by measuring the various elements…

Q: BC Co.,is analyzing whether to expand operations by adding a new product line. Which of the…

A: Product line means the selling of related products under one company, and one brand name. Expanding…

Q: Little Cory Corporation is considering dropping product G41O. Data from the company's accounting…

A: a. Particulars Amount Sales 450000 Variable expense -185000 Contribution margin 265000…

Q: If a division has negative net operating income, the company's profits might not increase even if…

A: The term "discontinued operations" is used in accounting to describe business divisions that have…

Q: Finance rocks had decided to reduce its fixed costs by seller some of its manufacturing facilities…

A: The cost structure refers to how expenses are organized within a business. It typically includes…

Q: Assume that a company has decided not to allocate any support department costs to producing…

A: Cost allocation means assigns cost to different heads or departments. It is a good tool that can be…

Q: Differentiate between a cost center, profit center, and investment center. What is the major…

A: Three different sorts of organizational units—cost centers, profit centers, and investment…

Q: If ROI is used to evaluate a manager’s performance for a relatively new division, which of the…

A: The correct option is b that is, Net book value using accelerated rather than straight-line…

Q: Is Aston acting ethically?

A: Discuss whether person A’s action is ethical or not:

Q: A paper published in the Harvard Business Review points out a new way to calculate economic profit…

A: Economic Profit: It is the profit after deducting opportunity cost from operating profit.

Q: “Once a company allocates corporate costs to divisions, these costs should not be reallocated to the…

A: Cost Allocation:The process of assigning the cost to the cost object is cost allocation. The cost…

Q: A paper published in the Harvard Business Review points out a new way to calculate economic profit…

A: An economic profit/loss refers to the difference between the costs of all inputs used in production…

Q: Suppose the Reidland CEO decides to use direct costs as the allocation base. Should the Brothers…

A: Explain whether person R decided to select direct cost as allocation base then in this case B…

Q: The Cook Corporation has two divisions--East and West. The divisions have the following revenues and…

A: Elimination of the division W will reduce the variable cost and the traceable fixed costs but the…

Q: The management of Wengel Corporation is considering dropping product B90D. Data from the company's…

A: The product can be discontinued if contribution loss associated with product is lower than the…

Question

Multiple Choice
$113,700
$(43,300)
$(144,000)
$(30,300)

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
$575,000
168,000
165,000
128,300
$ 113,700
West
$ 507,000
301,000
193,000
157,000
$ (144,000)
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:

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Discontinuing operations for a product or a service line

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The Cook Corporation has two divisions-East and West. The divisions have the following revenues and expenses. East West $ 489,500 258,500 $ 550,000 198,000 169,500 117,500 194,400. 141, 100 $ 65,000 $ (104,500) Sales Variable costs 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 voided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in am verall company net operating income (loss) of: Multiple Choice O $(76,100) $(39,500) $65,000 $(104,500)
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)
The ABC 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) Muple Choice $141400 The management of ABC 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 Geven these data, the elimination of the West Division would result in an overall company net operating income foss) of $45.600) $1400 East $ 595,000 $140,000) 180,000 144,000 129,600 $141,400 West $ 445,500 236,500 203,400 187,000 $ (181,400) a
A company has two divisions-Lawrence and Lowell. The divisions have the following revenues and expenses: Lawrence $ 570,000 238,000 172,500 128,300 $ 31,200 Sales Variable costs Traceable fixed costs Allocated common corporate costs Net operating income (loss) Multiple Choice The management of the company is considering the elimination of the Lowell Division. If the Lowell 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 Lowell Division would result in an overall company net operating income (loss) of $31.200 Lowell $ 478,500 327,300 $(132,000) 147,600 163,200 $ (159,600)
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) 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 O $91,900 O $(64,100) $(142,000) East West $603,000 $ 506,000 231,000 300,000 151,500 192,000 128,600 156,000 $ 91,900 $(142,000) $(50,100)
The Milbam Company has two divisions - East and West. The divisions have the following revenues and expenses: East West Sales P720,000 P350,000 Variable costs 370,000 240,000 Traceable fixed costs Allocated common corporate costs Net operating income (loss) 130,000 80,000 120,000 50,000 P100,000 P(20,000) Management at Milham is pondering the elimination of the West Division since it has shown an operating loss for the past several years. 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 of: P100,000 P50,000 P120,000 P80,000
The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses: North SouthSales £900,000 £800,000Variable expenses 450,000 300,000Traceable fixed expenses 260,000 210,000Allocated common corporate expenses 240,000 190,000Operating profit (loss) £(50,000) £100,000 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. Given these data, the elimination of North Division would result in an overall company operating profit of:
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:…
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
Mnak Corporation has two divisions: the OT Products Division and the NT Products Division. The OT Products Division's divisional segment margin is P255,000 and the NT Products Division's divisional segment margin is P59,800. The total amount of common fixed expenses not traceable to the individual divisions is P163,700. What is the company's net operating income? (P314,800) P151,100 P379,200 P455,000
RelyaTech Corporation has two divisions: the Domestic Division and the Foreign Division. The RelyaTech Corporation's net operating income is $79,600. The Domestic Division's divisional segment margin is $48,600 and the Foreign Division's divisional segment margin is $171,900. (ID#26445) Q) What is the amount of the RelyaTech Corporation's common fixed expense not traceable to the individual divisions? Multiple Choice $251,500 O$140,900 $128,200 $220,500
Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Products Division's divisional segment margin is $37,300 and the Export Products Division's divisional segment margin is $89,700. The total amount of common fixed expenses not traceable to the individual divisions is $100,400. What is the company's net operating income (loss)? Multiple Choice $227,400 $127,000 $26,600 ($127,000)