Question 1 Kentucky Distributors has two divisions – Northern and Southern. The divisions have provided the following financial information: Northern Southern Sales $140,310 $199,080 Variable costs 98,020 117,860 Common fixed costs 51,620 57,680 Operating income ($9,330) $23,540 Kentucky’s executives are considering the elimination of the Northern division. If the division is eliminated, the common fixed costs will remain unchanged. Given these data, should the Northern division be eliminated? (Enter loss using either a negative sign preceding the number e.g. -4,527 or parentheses e.g. (4,527).) Total With Northern Without Northern Operating income $ $ Kentucky eliminate the Northern division.
Hi
Let me know in case you face any issue:
Get Answers For Free
Most questions answered within 1 hours.