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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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