33. Preparing for my upcoming mid-term using these practice problems. Would be grateful if one could help.

The Acme Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West Sales $ 500,000 $ 550,000 Variable costs 200,000 275,000 Direct fixed costs 150,000 180,000 Allocated common corporate costs 135,000 170,000 Net operating income (loss) S 15,000 $ (75,000 The management of Acme is considering the elimination of the West Division. If the West Division were eliminated, its direct 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: Answers A-D A ($95,000) O B $15,000 O C $75,000 A common mistake managers make in deciding to close a division is D (5155,000) Answers A-D