Question
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 | $ | 590,000 | $ | 348,000 | $ | 938,000 | |||||
| Variable costs | 202,000 | 160,000 | 362,000 | ||||||||
| Contribution margin | $ | 388,000 | $ | 188,000 | $ | 576,000 | |||||
| Direct fixed costs | 174,000 | 146,000 | 320,000 | ||||||||
| Segment margin | $ | 214,000 | $ | 42,000 | $ | 256,000 | |||||
| Allocated common costs | 85,000 | 69,000 | 154,000 | ||||||||
| Operating income (loss) | $ | 129,000 | $ | (27,000 | ) | $ | 102,000 | ||||
Operating income for Bridgeton Corporation as a whole if the Carter Division were dropped would be:
Multiple Choice
-
$102,000.
-
$156,000.
-
$60,000.
-
$129,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting What The World's Best Forensic Accountants And Auditors Know About Forensic Accounting And Auditing That You Dont
Authors: Greg Shields
1st Edition
1647483255, 978-1647483258
