The operations of Damon Ward Corporation are divided into the Fix Division nd the Roach Division. Projections for the next year are as follows:

	Fix Division	Roach Division	Total
Sales	$60000	$40000	$100000
Variable Costs	20000	15000	35000
Contribution margin	$40000	$25000	$65000
Direct fixed costs	12500	30000	42500
Segment margin	$27500	$(5000)	$22500
Allocation common costs	10000	7500	17500
Operating income (loss)	$17500	$(12,500)	$5000

REQUIRED:

a. Determine operating income for Damon Ward Corporation as a whole if the Roach Division is dropped.

b. Should the Roach Division be eliminated?