Bаrbeque King is а restаurant with 3 different restaurant lоcatiоns: Miami, Tallahassee, and Orlandо. The company allocates common fixed costs equally to each location. The company’s total operating income during the year 2017 was $109,000. Information about the restaurant locations from the year 2017 follows: Miami Tallahassee Orlando Total Sales $150,000 $250,000 $105,000 Total Variable Costs $105,000 $100,000 $75,000 Traceable Fixed $43,000 $20,000 $32,000 Costs Common Fixed Costs $7,000 $7,000 $7,000 Operating Income -$5,000 $123,000 -$9,000 Suppose that the Orlando restaurant location were eliminated at the beginning of the year 2017. That is, assume that during the year 2017 the company only had the Miami and Tallahassee restaurant locations. What would the company’s total operating income have been for the year 2017?
Bаrbeque King is а restаurant with 3 different restaurant lоcatiоns: Miami, Tallahassee, and Orlandо. The company allocates common fixed costs equally to each location. The company’s total operating income during the year 2017 was $109,000. Information about the restaurant locations from the year 2017 follows: Miami Tallahassee Orlando Total Sales $150,000 $250,000 $105,000 Total Variable Costs $105,000 $100,000 $75,000 Traceable Fixed $43,000 $20,000 $32,000 Costs Common Fixed Costs $7,000 $7,000 $7,000 Operating Income -$5,000 $123,000 -$9,000 Suppose that the Orlando restaurant location were eliminated at the beginning of the year 2017. That is, assume that during the year 2017 the company only had the Miami and Tallahassee restaurant locations. What would the company’s total operating income have been for the year 2017?
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