The operations of Hot Pot Feast Corporation are divided into the December Division and the January Division. Projections for the next year are as follows:

Sales Variable costs Contribution margin Direct fixed costs Segment margin Allocated common costs Operating income (loss)

December Division $850,000 $600,000 $250,000 $120,000 $130,000 $70,000 $60,000

January Division $600,000 $500,000 $100,000 $50,000 $50,000 $100,000 ($50,000)

Total $1,450,000 $1,100,000 $350,000 $170,000 $180,000 $170,000 $10,000

27 Operating income for Hot Pot Feast Corporation as a whole if the December Division were dropped would be

1. A $130,000

2. B $60,000

3. C ($50,000)

4. D ($120,000)