3. The Milham Company has two divisions - East and West. The divisions
have the following revenues and expenses:
Management at Milham is pondering the elimination of the West Division
since it has shown an operating loss for the past several years. If the
West 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 West Division would
result in an overall company net operating income of:
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