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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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