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The operations of Blink Corporation are divided into the Adams Division and the Carter Division. Projections for the next year are as follows: Adams Division
The operations of Blink Corporation are divided into the Adams Division and the Carter Division. Projections for the next year are as follows: |
Adams Division | Carter Division | Total | ||||
Sales | $ | 561,000 | $ | 337,000 | $ | 898,000 |
Variable costs | 196,500 | 154,500 | 351,000 | |||
Contribution margin | $ | 364,500 | $ | 182,500 | $ | 547,000 |
Direct fixed costs | 168,200 | 140,200 | 308,400 | |||
Segment margin | $ | 196,300 | $ | 42,300 | $ | 238,600 |
Allocated common costs | 84,200 | 63,200 | 147,400 | |||
Operating income (loss) | $ | 112,100 | $ | (20,900) | $ | 91,200 |
Operating income for Blink Corporation as a whole if the Carter Division were dropped would be:
$91,200.
$133,000.
$48,900.
$112,100.
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