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) he management of the company is considering the elimination of the Lowell Division. If the Lowell Division were eliminated, its traceable fixed costs could voided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the Lowell Division would result in an ove ompany net operating income (loss) of Multiple Choice $31.200 Lowell $ 478,500 327,300 147,600 163,200 $ (159,600) $(132,000)
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) he management of the company is considering the elimination of the Lowell Division. If the Lowell Division were eliminated, its traceable fixed costs could voided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the Lowell Division would result in an ove ompany net operating income (loss) of Multiple Choice $31.200 Lowell $ 478,500 327,300 147,600 163,200 $ (159,600) $(132,000)
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter24: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 8E: Rocky Mountain Airlines Inc. has two divisions organized as profit centers, the Passenger Division...
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![Mumple Choice
$31,200
$(132,000)
$(159.600)
$(128.400)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2375c06c-c2fd-4086-be02-4d7395994926%2F1abd1a81-a1ff-4035-a285-8b04494c8392%2Fzggb7oc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Mumple Choice
$31,200
$(132,000)
$(159.600)
$(128.400)
![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)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2375c06c-c2fd-4086-be02-4d7395994926%2F1abd1a81-a1ff-4035-a285-8b04494c8392%2Fcg1bqf_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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)
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