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Northern Eastern Division Division Total Sales Less: Variable costs Contribution margin Less: Direct fixed costs Segment margin Less: Allocated common costs130,000 Operating income (loss) $750,000$540,000

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Northern Eastern Division Division Total Sales Less: Variable costs Contribution margin Less: Direct fixed costs Segment margin Less: Allocated common costs130,000 Operating income (loss) $750,000$540,000 $1,290,000 70,000 300,000 570,000 $480,000$240,000 $720,000 225,000 190,000 415,000 $255,000 $50,000 $305,000 95,0 $125,000 ($45,000 $80,000 Required: (5 pts total) a. What is operating income for Jorge Corporation, as a whole, if the Eastern Division was dropped? b. If Eastern Division is dropped, Northern's sales will increase by 20%. What will Jorge Corporation's operating income be

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