Business, 16.06.2021 22:10 iilovejohnccena1022

McCarthy Industries has two sales territories-East and West. Financial information for the two territories is presented below: East West Sales $980,000 $750,000 Direct costs: Variable (343,000) (225,000) Fixed (450,000) (325,000) Allocated common costs (275,000) (175,000) Net income (loss) $(88,000) $25,000 Because the company is in a start-up stage, corporate management feels that the East sales territory is creating too much of a cash drain on the company and it should be eliminated. If the East territory is discontinued, one sales manager (whose salary is $40,000 per year) will be relocated to the West territory. By how much would McCarthy's income change if the East territory is eliminated

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McCarthy Industries has two sales territories-East and West. Financial information for the two terri...

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