question archive Dudley Transport Company divides its operations into four divisions
Dudley Transport Company divides its operations into four divisions
Subject:AccountingPrice: Bought3
Dudley Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. DUDLEY TRANSPORT COMPANY West Division Income Statement for Year 3 Revenue $ 700,000 Salaries for drivers (550,000) Fuel expenses (70,000) Insurance (90,000) Division-level facility- sustaining costs (60,000) Companywide facility- sustaining costs (150,000) Net loss $(220,000) 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 $790,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segment were eliminated. Should West Division be eliminated if revenue were $790,000? 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 Required Required A B ? By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? Income would by Should West Division be eliminated? < Required A Required B > Required Required Required A B ? Assume that West Division is able to increase its revenue to $790,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segment were eliminated. Should West Division be eliminated if revenue were $790,000? Show less Income by would Should West Division be eliminated? < Required A Required C > Required Required Required A B ? What is the minimum amount of revenue required to justify continuing the operation of West Division? Minimum amount of revenue < Required B Required c
