1 answer

The Cook Corporation has two divisions East and West The have the following and $570,000 $467.500...

Question:

The Cook Corporation has two divisions East and West The have the following and $570,000 $467.500 Variable costs Traceable fi
The Cook Corporation has two divisions East and West The have the following and $570,000 $467.500 Variable costs Traceable fixed costs Allocated common corporate costs Net operating Incon (less) 168,000 129. 6 $46,400 149.400 159,00 (64,500) The management of Cook is considering the nation of the West Omision the Westion were made cele decision Given these data, the nation of the West Division woud an overal company net g income de acted by this Multiple Choice O $46.400 0 4001 ( 4500 0 08:00

Answers

Correct answer----------$113,400

Working

East West Total
Sales revenue $     570,000.00 $     570,000.00
Variable cost $     226,000.00 $     226,000.00
Contribution margin $     344,000.00 $                        -   $     344,000.00
Traceable Fixed cost $     168,000.00 $     168,000.00
Allocated common cost $     129,600.00 $       159,800.00 $     289,400.00
Operating income (loss) $       46,400.00 $    (159,800.00) $   (113,400.00)

All common fixed cost will be the loss of west division and total loss will increase to $113400.

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