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The Lamar Company manufactures wiring tools. The company is currently producing well below its full capacity. The Boston Company has approached Lamar with an offer

The Lamar Company manufactures wiring tools. The company is currently producing well below its full capacity. The Boston Company has approached Lamar with an offer to buy 17,000 tools at $1.82 each. Lamar sells its tools wholesale for $1.92 each; the average cost per unit is $1.90, of which $0.34 is fixed costs. If Lamar were to accept Boston's offer, what would be the increase in Lamar's operating profits?

The King Company has two divisionsNorth and South. The divisions have the following revenues and expenses:

North South
Sales $ 950,000 $ 900,000
Variable expenses 460,000 350,000
Traceable fixed expenses 270,000 220,000
Allocated common corporate expenses 260,000 200,000
Net operating income (loss) $ (40,000 ) $ 130,000

Management at King is pondering the elimination of North Division. If North Division were eliminated, its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected. Given these data, the elimination of North Division would result in an overall company net operating income of:

The operations of Winston Corporation are divided into the Blink Division and the Blur Division. Projections for the next year are as follows:

Blink Division Blur Division Total
Sales $ 290,000 $ 172,000 $ 462,000
Variable costs 100,000 79,000 179,000
Contribution margin $ 190,000 $ 93,000 $ 283,000
Direct fixed costs 86,000 72,000 158,000
Segment margin $ 104,000 $ 21,000 $ 125,000
Allocated common costs 41,000 33,500 74,500
Operating income (loss) $ 63,000 $ (12,500 ) $ 50,500

Operating income for Winston Corporation, as a whole, if the Blur Division were dropped would be:

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