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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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