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Power Incorporated has two divisions, Windsor and Ridge. The following is the income statement for the past month: Sales revenue Variable costs Contribution or
Power Incorporated has two divisions, Windsor and Ridge. The following is the income statement for the past month: Sales revenue Variable costs Contribution or segment margin* Common fixed costs (allocated) Net operating income (loss) *Note that there are no direct fixed costs. Windsor $ 361,700 281,600 $ 80,100 120,500 Ridge $ 321,400 151,300 $ 170,100 129,700 $ (40,400) $ 40,400 Total $ 683,100 432,900 $ 250,200 250 200 What would Power's income (loss) be if the Windsor Division was dropped and all common fixed costs are unavoidable? Multiple Choice $0 $80,100 loss
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