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East West Sales $500,000$550,000 Variable costs 200,000,275,000 Traceable fixed costs 150,000,180,000 Allocated common...

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Accounting

East West
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 operating income (loss).
$15,000$(75,000)
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:
A) $15,000
B) $(155,000)
C) $(75,000)
D) $(60,000)
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