Solution-What divisions of valor company that should be

What divisions of valor company that should be shutdown

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Reference no: EM132624903

The operating results of Valor Company by division for the current year are summarized below. Unavoidable company headquarter's cost of 1,540,000 included in the total costs have been distributed to the divisions on the basis of sales revenue. The remaining portion of the total costs have been incurred at the divisional level and can be avoided if a division is shut down.

		Valor Company
	Operating Results
	Year ended Nov. 30, 2016
	Total	North	South	East	West
Sales revenue	6,600,000	990,000	2,640,000	990,000	1,980,000
Total costs	6,226,000	572,000	2,090,000	1,276,000	2,288,000
Profit/Loss	374,000	418,000	550,000	286,000	308,000

Problem 1: What divisions of Valor Company that should be shutdown due to failure to cover divisional cost?

Reference no: EM132624903

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What divisions of valor company that should be shutdown

Reference no: EM132624903

Reference no: EM132624903

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