Enscoe enterprises, inc. (eei) has 260,000 shares authorized, 220,000 shares issued, and 30,000 shares of treasury stock. at this point, eei has $1,340,000 of assets. $200,000 liabilities, $500,000 of common stock, and $640,000 of retained earnings. further, assume that the market value of eei's common stock is $8 per share.

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) the management of cook is considering the elimination of the west division. 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 (loss)