The operations of Balance Corporation are divided into the Kaplan Division and the Norton Division. Projections for the next year are as follows:

	Kaplan	Norton	Total
Sales	$ 1,200,000	$ 600,000	$ 1,800,000
Variable Costs	480,000	360,000	840,000
Contribution Margin	$ 720,000	$ 240,000	$ 960,000
Direct fixed costs	160,000	90,000	250,000
Segment margin	$ 560,000	$ 150,000	$ 710,000
Allocated common costs	360,000	180,000	540,000
Operating Income (loss)	$ 200,000	$ (30,000)	$ 170,000

Required:

a. Operating income for Balance Corporation, as a whole, if the Norton Division were dropped would be:

b. If the Norton Division were dropped, Kaplan Division's sales would increase by 45%. If this happened, the operating income for Balance Corporation as a whole would be: