Henry Orbit has 2 divisions – Neptune and Mars. The divisions have the following revenues and...

Henry Orbit has 2 divisions – Neptune and Mars. The divisions have the following revenues and expenses:

	Neptune	Mars
Sales	$450,000	$200,000
Variable costs	125,000	100,000
Traceable fixed costs	75,000	95,000
Allocated common corporate costs	45,000	20,000
Net operating income (loss)	$205,000	$(15,000)

Orbit considering the elimination of the Mars Division since it has shown an operating loss for the past several years. If the Mars 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 Mars Division would result in an overall company net operating income of:

Expert Solution

ekkarill92 answered 2 years ago

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