The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses:

	East			West
Sales	$	585,000		$	456,500
Variable costs		208,000			255,800
Traceable fixed costs		160,500			172,800
Allocated common corporate costs		131,000			185,300
Net operating income (loss)	$	85,500		$	(157,400	)

The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable 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:

 

Answer rating: 100% (QA)

To determine the overall company net operating income loss after the elimin... View the full answer