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Acme Company has two divisions, East Division and West Division. Here are...

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Accounting

Acme Company has two divisions, East Division and West Division.
Here are data regarding the current year:
Acme plans to discontinue the West Division. If the division is
eliminated, 75% of its traceable fixed costs are avoidable. The
remaining 25% are sunk costs. Acme's common fixed costs are
$246,600. What would Acme's operating income (loss) be if it
eliminates the West Division?
$156,000
$(139,200)
$(90,600)
$(37,500)
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