The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses:SalesVariable costsTraceable fixed costsAllocated common corporate costsNet operating income (loss)East$ 550,000West$489,500198,000169,500117,500$ 65,000258,500194,400141,100$ (104,500)The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could beavoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in anoverall company net operating income (loss) of:Multiple Choice$65,000$(104,500)$(39,500)О$(76,100)

Current Financial Summary:East Division Net Operating Income: $65,000West Division Net Operating…

Answered: The Cook Corporation has two…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Cook Corporation has two divisions-East and West. The divisions have the following revenues and expenses. East West $ 489,500 258,500 $ 550,000 198,000 169,500 117,500 194,400. 141, 100 $ 65,000 $ (104,500) Sales Variable costs Traceable fixed costs Allocated common corporate costs. Net operating income (loss) The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be voided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in am verall company net operating income (loss) of: Multiple Choice O $(76,100) $(39,500) $65,000 $(104,500)
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: Sales Variable costs Traceable fixed costs Allocated common corporate costs Net operating income (loss) East $575,000 168,000 165,000 128,300 $ 113,700 West $ 507,000 301,000 193,000 157,000 $ (144,000) 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:
The Cook Corporation has two divisions-East and West. The divisions have the following revenues and expenses: East West $590,000 $ 456,500 232,000 Sales Variable costs 294,300 Traceable fixed costs 144,000 151,200 $ 62,800 $(186, 700) 160, 200 188,700 Allocated common corporate costs Net operating income (loss) 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 a company net operating income (loss) of: Multiple Cholce $62,800 S1125,900) S/186,700) $123,900)
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West $ 585,000 208,000 160,500 131,000 $ 456,500 255,800 172,800 185,300 Sales Variable costs Traceable fixed costs Allocated common corporate costs 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:
A company has two divisions-Lawrence and Lowell. The divisions have the following revenues and expenses: Lawrence $ 570,000 238,000 172,500 128,300 $ 31,200 Sales Variable costs Traceable fixed costs Allocated common corporate costs Net operating income (loss) Multiple Choice The management of the company is considering the elimination of the Lowell Division. If the Lowell 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 Lowell Division would result in an overall company net operating income (loss) of $31.200 Lowell $ 478,500 327,300 $(132,000) 147,600 163,200 $ (159,600)
The ABC Corporation has two divisions-East and West The divisions have the following revenues and expenses Sales Variable costs Traceable fixed costs Allocated common corporate costs Net operating income (loss) Muple Choice $141400 The management of ABC 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 Geven these data, the elimination of the West Division would result in an overall company net operating income foss) of $45.600) $1400 East $ 595,000 $140,000) 180,000 144,000 129,600 $141,400 West $ 445,500 236,500 203,400 187,000 $ (181,400) a
The Milbam Company has two divisions - East and West. The divisions have the following revenues and expenses: East West Sales P720,000 P350,000 Variable costs 370,000 240,000 Traceable fixed costs Allocated common corporate costs Net operating income (loss) 130,000 80,000 120,000 50,000 P100,000 P(20,000) Management at Milham is pondering the elimination of the West Division since it has shown an operating loss for the past several years. 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 of: P100,000 P50,000 P120,000 P80,000
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West Sales $ 601,000 $ 504,000 Variable costs 229,000 298,000 Traceable fixed costs 149,500 190,000 Allocated common corporate costs 126,600 154,000 Net operating income (loss) $ 95,900 $ (138,000 ) 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: Multiple Choice $95,900 $(58,100) $(138,000) $(42,100)
The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses: North SouthSales £900,000 £800,000Variable expenses 450,000 300,000Traceable fixed expenses 260,000 210,000Allocated common corporate expenses 240,000 190,000Operating profit (loss) £(50,000) £100,000 Management at Kelsh is pondering the elimination of North Division. If North Division were eliminated, its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected. Given these data, the elimination of North Division would result in an overall company operating profit of:
Your Corporation has two divisions: A Division and B Division. The corporation's net operating income is $31,800. The A Division's divisional segment margin is S111,800 and the B Division's divisional segment margin is $152,800. What is the amount of the common fixed expense not traceable to the individual divisions? O $121,000 O $232,800 O $ 80,000 O $296,400
Windsor Company has two divisions - Alpha and Beta. The divisions have the following revenues and expenses: Alpha Beta Sales $550,000 $500,000 Variable costs 275,000 200,000 Direct fixed costs 180,000 150,000 Allocated corporate costs 170,000 135,000 Net income (loss) ($75,000) $15,000 The management of Windsor is considering the elimination of the Alpha Division. If the Alpha Division were eliminated, the direct fixed costs associated with this division could be avoided. However, corporate costs would still be $305,000 in total. Given these data, the elimination of the Alpha Division would result in an overall company net income (loss) of: Multiple Choice ($75,000). ($60,000). ($155,000). $15,000.
The Kelsh Company has two divisions North and South. The divisions have the following revenues and expenses: North South Sales $300,000 $400,000 Less Operating Expenses: Variable Expenses 150,000 200,000 Traceable Fixed Expenses 100,000 100,000 Allocated Common Corporate Expenses 75,000 325,000 50,000 350,000 Net Operating Income (Loss) $( 25,000) $ 50,000 Management at Kelsh is pondering the elimination of North Division. If North Division were eliminated, its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected.INSTRUCTIONS Compute the amount of total operating income that would result if Kelsh dropped the North Division. Match each of the following with the correct amount:…

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