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Shirley Inc. has three divisions, King, West and Gold. Following is the income statement for the previous year: King West Gold Total Sales $ 983,000

Shirley Inc. has three divisions, King, West and Gold. Following is the income statement for the previous year:

King West Gold Total
Sales $ 983,000 $ 575,500 $ 426,000 $ 1,984,500
Variable Costs 417,500 344,100 300,600 1,062,200
Contribution Margin 565,500 231,400 125,400 922,300
Fixed Costs 394,000 195,625 149,375 739,000
Profit Margin $ 171,500 $ 35,775 $ (23,975 ) $ 183,300

Of the fixed costs, $324,000 is for corporate costs and is allocated equally to the three divisions. a. How much does Gold Division have in direct fixed costs?

b. What is Gold Divisions segment margin? c. What would Shirleys profit margin be if Gold Division were dropped?

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