. 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 370,000 130,000 240,000 Traceable fixed costs 80,000 Allocated common corporate costs Net operating income (loss) 50,000 P100,000 | P (20,000) 120,000| 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: O P100,000 O P50,000 O P120,000 O P80,000

. 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 370,000 130,000 240,000 Traceable fixed costs 80,000 Allocated common corporate costs Net operating income (loss) 50,000 P100,000 | P (20,000) 120,000| 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: O P100,000 O P50,000 O P120,000 O P80,000

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter24: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 3CMA

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The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East Week Sales 575000$ 490500$ Variable costs 188000$ 259500$ Traceable fixed costs 172500$ 195400$ Allocated common corporate costs 122900$ 142100$ Net operating income ( loss ) 91600$ (106500$) 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:
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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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