By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated?

Assume that West Division is able to increase its revenue to $$650,000$ by raising its prices. Determine the amount of the contribution to profit by West Division. Should West Division be eliminated if revenue is $$650,000?$

What is the minimum amount of revenue required to justify continuing the operation of West Division?Jordan Transport Company divldes Its operations Into four divisions. A recent Income statement for Its West DVIsion follows.

JORLAN TPANSPORT CONPANY

Hest division

Inoome statement for Year $3$

Revenue

salaries for drivers

Fuel expenses

Insurance

Division$-$level facility$-$sustaining costs

companywide facility$-$sustaining oosts

Net loss

$$590,600$

$(440,000)$

$(59,609)$

$(79,600)$

$(49,609)$

$(139,600)$

$$(176,000)$

Required

a$.$ By how much would companywlde Income Increase or decrease if West Dision Is ellminated? Should West Dlvision be ellminated?

b$.$ Assume that West Division is able to Increase Its revenue to $$650,000$ by ralsing its prices. Determine the amount of the contribution

to profit by West Division. Should West Division be eliminated if revenue is $$650,000?$

c$.$ What is the minlmum amount of revenue requlred to justlfy contInulng the operation of West Division?

Complete this question by entering your answers in the tabs below.

Required A Required B Required C

By how much would companywide income increase or decrease if West Division is eliminated? should West Division be

eliminated?