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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Mason Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. MASON TRANSPORT COMPANY West Division Income Statement for the Year 2015 Revenue $ 560,000 Salaries for drivers (410,000 ) Fuel expenses (56,000 ) Insurance (76,000 ) Division-level facility-sustaining costs (46,000 ) Companywide facility-sustaining costs (136,000 ) Net loss $ (164,000 ) Required:
a-1. By how much would companywide income increase or decrease if West Division is eliminated?
Income would_____________by______________
| a-2. | Should West Division be eliminated? | ||||
| Â | Â Â Â | ||||
| Â |
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| b-1. |
Assume that West Division is able to increase its revenue to $620,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income. |
| Â | Â |
| Â | Income would__________By______________ |
Â
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