Segment Operations. Operating results for the Westmeyer Writing Company were disappointing last year as shown below: Sales
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Segment Operations. Operating results for the Westmeyer Writing Company were disappointing last year as shown below: Sales Variable costs Contribution margin Fixed costs: Separable Pins Pencils Erasers Total $150.000 190.000 $100,000 $50,000 $300,000 50,000 (35,000) (175,000) $ 60.000 $ 50,000 $15,000 $125,000 (20,000) (15.000 (5.000) (40.000) (15.000) (15,000 $25,000 $20,000 (15,000) $5,000 (45,000) $40.000 Common Net income "Alocated equally to divisions. In order to improve profits for next year, the president may drop the Eraser Division. Assuming this action has no effect on the sales and costs of the other divisions and that total common fixed costs do not change, what will be net income for next year?
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