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The operations of Bridgeton Corporation are divided into the Adams Division and the Carter Division. Projections for the next year are as follows: Adams Division
The operations of Bridgeton 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 | $ | 640,000 | $ | 362,000 | $ | 1,002,000 | |||||
Variable costs | 212,000 | 170,000 | 382,000 | ||||||||
Contribution margin | $ | 428,000 | $ | 192,000 | $ | 620,000 | |||||
Direct fixed costs | 184,000 | 156,000 | 340,000 | ||||||||
Segment margin | $ | 244,000 | $ | 36,000 | $ | 280,000 | |||||
Allocated common costs | 95,000 | 79,000 | 174,000 | ||||||||
Operating income (loss) | $ | 149,000 | $ | (43,000 | ) | $ | 106,000 | ||||
Operating income for Bridgeton Corporation as a whole if the Carter Division were dropped would be:
$70,000.
$149,000.
$192,000.
$106,000.
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