The operations of ABC Corporation are divided into the Childs Division and the Jackson Division. Projections for the next year are as follows:

Childs Jackson

Division Division Total

Sales P250,000 P180,000 P430,000

Variable costs 90,000 100,000 190,000

Contribution margin P160,000 P 80,000 P240,000

Direct fixed costs 75,000 62,500 137,500

Segment margin P 85,000 P 17,500 P102,500

Allocated common costs 35,000 27,500 62,500

Operating income (loss) P 50,000 P(10,000) P 40,000

Operating income for ABC Corporation as a whole if the Jackson Division were dropped would be