Corporation has two divisions: Blue Division and Gray Division. The following financial information is for the most recent operating period:

	Blue	Gray
	Division	Division
Sales	100,000	367,500
Variable Expenses	45,000	147,000
Traceable Fixed Expenses	37,950	139,800

Common fixed expense for Benson Corporation was $65,270.

A. A properly constructed segmented income statement in the contribution format would show that net operating income of the whole company was:

B. The Blue Division's break-even sales is closest to:

C. What is the company's overall net operating income (loss) if it operates at the break-even points for its two divisions?

D. The marketing department of the company has submitted a proposal that would increase sales in the Blue Division by 5%. The proposal would result in a $5,000 increase in marketing expenses specific to the Blue Division. If the proposal is implemented, then the financial impact on the Blue Division is:\

E. A proposal has been made that will lower variable expenses in Gray Division to 35% of sales. However, this reduction can only be accomplished by an increase in Gray Division's traceable fixed expenses of $8,000. If this proposal is implemented and sales remain constant, overall company net operating income should: