A corporation has two divisions–East and West. The division…
A corporation has two divisions–East and West. The divisions have the following revenues and expenses: East West Sales $ 585,000 $ 456,500 Variable costs 208,000 255,800 Traceable fixed costs 160,500 172,800 Allocated common corporate costs 131,000 185,300 Net operating income (loss) $ 85,500 $ (157,400) Management 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: