Multiple Choice$113,700$(43,300)$(144,000)$(30,300) 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$575,000168,000165,000128,300$ 113,700West$ 507,000301,000193,000157,000$ (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 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:

Introduction:- Net Operating Income indicates the health and viability of a business by showing its…

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 overall company net operating income (loss) of:

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 overall company net operating income (loss) of:

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 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) $(42,100)
The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses: North SouthSales £900,000 £800,000Variable expenses 450,000 300,000Traceable fixed expenses 260,000 210,000Allocated common corporate expenses 240,000 190,000Operating profit (loss) £(50,000) £100,000 Management at Kelsh is pondering the elimination of North Division. If North Division were eliminated, its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected. Given these data, the elimination of North Division would result in an overall company operating profit of:
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East Week Sales 575000$ 490500$ Variable costs 188000$ 259500$ Traceable fixed costs 172500$ 195400$ Allocated common corporate costs 122900$ 142100$ Net operating income ( loss ) 91600$ (106500$) 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 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:…
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.
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Rice Corporation currently operates two divisions which had operating results last year as follows: West Troy Division Division Sales..................................................................... $600,000 $300,000 Variable costs.................................................. 310,000 200,000 Contribution margin..................................... 290,000 100,000 Traceable fixed costs.................................... 110,000 70,000 Allocated common corporate costs........ 90,000 45,000 Net operating income (loss)...................... $ 90,000 ($ 15,000) Since the Troy Division also sustained an operating loss in the prior year, Rice's president is considering the elimination of this division. Troy Division's traceable fixed costs could be avoided if the division were eliminated. The total common corporate costs would be unaffected by the decision. If the…
Enviro-Tech’s management decides to allocate all corporate-sustaining costs to distribution channels: $38 million to the wholesale channel and $10 million to the retail channel. As a result, distribution channel costs are now $71 million ($33 million + $38 million) for the wholesale channel and $22 million 1$12 million + $10 million) for the retail channel. Calculate the distribution-channel-level operating income. On the basis of these calculations, what actions, if any, should Enviro-Tech’s managers take? Explain.