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The operations of Ranger Corporation are divided into the Stargate Division and the Cosmos Division. Projections for the next year are as follows: Stargate Division
The operations of Ranger Corporation are divided into the Stargate Division and the Cosmos Division. Projections for the next year are as follows: Stargate Division Cosmos Division Total Sales $ 595,000 $ 389,000 $ 984,000 Less: Variable Costs 199,000 219,000 418,000 Contribution Margin $ 396,000 $ 170,000 $ 566,000 Less: Direct Fixed Costs 169,000 144,000 313,000 Segment Margin $ 227,000 $ 26,000 $ 253,000 Less: Allocated Common Costs 98,000 74,000 172,000 Operating Income (Loss) $ 129,000 $ (48,000) $ 81,000 Operating income for Ranger Corporation, as a whole, if the Cosmos Division were dropped would be Multiple Choice $81,000. $129,000. $177,000. $55,000.
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