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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 | $ | 568,000 | $ | 344,000 | $ | 912,000 |
Variable costs | 200,000 | 158,000 | 358,000 | |||
Contribution margin | $ | 368,000 | $ | 186,000 | $ | 554,000 |
Direct fixed costs | 169,600 | 141,600 | 311,200 | |||
Segment margin | $ | 198,400 | $ | 44,400 | $ | 242,800 |
Allocated common costs | 85,600 | 64,600 | 150,200 | |||
Operating income (loss) | $ | 112,800 | $ | (20,200) | $ | 92,600 |
Operating income for Blink Corporation as a whole if the Carter Division were dropped would be:
$112,800.
$92,600.
$133,000.
$48,200.
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