Acme Company has two divisions, East Division and West Division. Here are data regarding the current...

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Acme Company has two divisions, East Division and West Division. Here are data regarding the current year: East Division West Division Sales revenue $560,000 $478,500 Variable costs 192,000 247,500 Contribution margin $368,000 $231,000 Traceable fixed costs 153,000 162,000 Segment margin $215,000 $69,000 Segment margin ratio 38.4% 14.4% Acme plans to discontinue the West Division. If the division is eliminated, 75% of its traceable fixed costs are avoidable. The remaining 25% are sunk costs. Acme's common fixed costs are $306,700. What would Acme's operating income (loss) be if it eliminates the West Division? Acme Company has two divisions, East Division and West Division. Here are data regarding the current year: East Division West Division Sales revenue $560,000 $478,500 Variable costs 192,000 247,500 Contribution margin $368,000 $231,000 Traceable fixed costs 153,000 162,000 Segment margin $215,000 $69,000 Segment margin ratio 38.4% 14.4% Acme plans to discontinue the West Division. If the division is eliminated, 75% of its traceable fixed costs are avoidable. The remaining 25% are sunk costs. Acme's common fixed costs are $306,700. What would Acme's operating income (loss) be if it eliminates the West Division?

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Answer To calculate Acmes operating income loss if it eliminates the West Division we need to c... View the full answer