A manufacturing firm has discontinued production of a certain unprofitable product line. Considerable excess capacity to one or more of three product: X1,X2, and X3,Machine hours required per unit are PRODUCT

MACHINE TYPE

X1

X2

X3

Milling machine

8

2

3

Lathe

4

3

0

Grinder

2

0

1

The available time in machine hours per week is

MACHINE HOURS PER WEEK

Milling machines

800

Lathes

480

Grinders

320

The salespeople estimate they can sell all the units of X1

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) 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)