Dudley Transport Company divides its operations into four divisions. A recent income statement for its West Division follows: DUDLEY TRANSPORT COMPANY
West Division
Income Statement for the Year 2019
Revenue$300,000
Salaries for drivers (210,000)
Fuel expenses (30,000)
Insurance (42,000)
Division-level facility-sustaining costs (24,000)
Companywide facility-sustaining costs (78,000)
Net loss$(84,000)
Required
By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated?
Assume that West Division is able to increase its revenue to $324,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income. Should West Division be eliminated if revenue were $324,000?
What is the minimum amount of revenue required to justify continuing the operation of West Division?
A: Income would INCREASE by ?
B: Income would INCREASE by ?
C: minimum amount of revenue ?