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

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

Required

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

b$.$ Assume that West Division is able to increase its revenue to $$640,000$ by raising its prices. Determine the amount of the contribution to profit by West Division. Should West Division be eliminated if revenue is $$640,000?$

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 $A$

Required C

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

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