Perez company is evaluating its two divisions west division


Question - Perez Company is evaluating its two divisions, West Division and East Division. Data for the West Division include sales of $530,000, variable costs of $290,000, and fixed costs of $260,000, 50 percent of which are traceable to the division. East Division's efforts for the same period include sales of $610,000, variable costs of $340,000, and fixed costs of $290,000, 60 percent of which are traceable to the division. Should either division be considered for elimination?

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