Exercise $6-15$A $($Algo$)$ Segment elimination decision LO $6-4$

Rundle Transport Company divides its operations into four divisions. A recent income statement for its West Division follows.

$\backslash$table$[[,\backslash$table$[[$RUNDLE TRANSPORT COMPANY$],[$West Division$]]],[$Income Statement for Year $3,]]$

Required

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

b$.$ Assume that West Division is able to increase its revenue to $$690,000$ by raising its prices. Determine the amount of the contribution to profit by West Division. Should West Division be eliminated if revenue is $$690,000?$

c$.$ What is the minimum amount of revenue required to justify continuing the operation of West Division?

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

Required B

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

Income would $$ by

Should West Division be eliminated?

Exercise $6-15$A $($Algo$)$ Segment elimination decision LO $6-4$

Rundle Transport Company divides its operations into four divisions. A recent income statement for its West Division follows.

$\backslash$table$[[,\backslash$table$[[$RUNDLE TRANSPORT COMPANY$],[$West Division$]]],[$Income Statement for Year $3,]]$

Required

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

b$.$ Assume that West Division is able to increase its revenue to $$690,000$ by raising its prices. Determine the amount of the contribution to profit by West Division. Should West Division be eliminated if revenue is $$690,000?$

c$.$ What is the minimum amount of revenue required to justify continuing the operation of West Division?

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

Required B

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

Income would $$ by

Should West Division be eliminated?