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

Question

Question

The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West $601

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

✔ Recommended Answer

Answer #1

Net operating income (loss) = net operating income of East division -allocated common cost to West division

= $95900 - 138000

= $(42100)

Add a comment

Answer 2

Similar Homework Help Questions

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

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 West $601,000 $ 504,000 229,000 298,000 149,500 190,000 126,600 154,000 $ 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....
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses:...

The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West Sales $ 595,000 $ 445,500 Variable costs 180,000 236,500 Traceable fixed costs 144,000 203,400 Allocated common corporate costs 129,600 187,000 Net operating income (loss) $ 141,400 $ (181,400 ) 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...
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses:...

The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West Sales $ 570,000 $ 467,500 Variable costs 226,000 222,800 Traceable fixed costs 168,000 149,400 Allocated common corporate costs 129,600 159,800 Net operating income (loss) $ 46,400 $ (64,500 ) 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...

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

The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West Sales $ 595,000 $ 445,500 Variable costs 180,000 236,500 Traceable fixed costs 144,000 203,400 Allocated common corporate costs 129,600 187,000 Net operating income (loss) $ 141,400 $ (181,400 ) 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...
The Cook Corporation has two divisions East and West The have the following and $570,000 $467.500...

The Cook Corporation has two divisions East and West The have the following and $570,000 $467.500 Variable costs Traceable fixed costs Allocated common corporate costs Net operating Incon (less) 168,000 129. 6 $46,400 149.400 159,00 (64,500) The management of Cook is considering the nation of the West Omision the Westion were made cele decision Given these data, the nation of the West Division woud an overal company net g income de acted by this Multiple Choice O $46.400 0 4001...
A- XYZ Corporation has two divisions—A and B. The divisions have the following revenues and expenses:...

A- XYZ Corporation has two divisions—A and B. The divisions have the following revenues and expenses: A B Sales $ 500,000 $ 550,000 Variable costs 200,000 275,000 Traceable fixed costs 150,000 180,000 Allocated common corporate costs 135,000 170,000 Net income (loss) $ 15,000 $ (75,000 ) The management of ABC is considering the elimination of Division B. If the Division B were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision....

Bright Corporation is organized into two geographic divisions (East and West) and a corporate headquarters. Late...

Bright Corporation is organized into two geographic divisions (East and West) and a corporate headquarters. Late in year 1, the Bright Corporation CFO prepared financial operating plans (budgets) for the two divisions, shown as follows. Revenues Direct division costs Operating profit before allocation East $2,480,000 1,488,000 $ 992,000 West $3,720,000 1,736,000 $1,984,000 Corporate overhead costs are expected to be $1,116,000 in year 2. Of the $1,116,000, $620,000 is fixed and $496,000 is variable, with respect to revenue. Division managers are...
Bright Corporation is organized into two geographic divisions (East and West) and a corporate headquarters. Late...

Bright Corporation is organized into two geographic divisions (East and West) and a corporate headquarters. Late in year 1, the Bright Corporation CFO prepared financial operating plans (budgets) for the two divisions, shown as follows. Revenues Direct division costs Operating profit before allocation East $ 2,080,000 1,248,000 $ 832,000 West $3,120,000 1,456,000 $1,664,000 Corporate overhead costs are expected to be $936,000 in year 2. Of the $936,000, $520,000 is fixed and $416,000 is variable, with respect to revenue. Division managers...
Bright Corporation is organized into two geographic divisions (East and West) and a corporate headquarters. Late...

Bright Corporation is organized into two geographic divisions (East and West) and a corporate headquarters. Late in year 1, the Bright Corporation CFO prepared financial operating plans (budgets) for the two divisions, shown as follows. Revenues Direct division costs Operating profit before allocation East $2,720,000 1,632,000 $1,088,000 West $4,080,000 1,904,000 $2,176,000 Corporate overhead costs are expected to be $1,224,000 in year 2. Of the $1,224,000, $680,000 is fixed and $544,000 is variable, with respect to revenue. Division managers are evaluated...

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

Homework Answers