B C D E F G H I 1 The operations of your company are divided into the Bolt Division and the Nuts Division. Projections for the next year are as follows: Total Sales Variable costs Contribution margin Direct fixed costs Segment margin Allocated common costs Operating income (loss) Bolt Division 98,000 13,000 85,000 24,000 61.000 30.000 31,000 Nuts Division 55.000 38.000 17,000 35,000 (18,000) 28.000 (46,000) 153,000 51.000 102,000 59.000 43.000 58.000 (15,000) 12 Required: Should the Nuts division be eliminated? Why? Bolt Division Nuts Division New Total Old Total Relevant Costs Sales Variable costs Contribution margin Direct fixed costs Segment margin Allocated common costs Operating income (loss)