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The operations of Superior Corporation are divided into the Northrup Division and the Hawley Division. Projections for the next year are as follows: Northrup Division

The operations of Superior Corporation are divided into the Northrup Division and the Hawley Division. Projections for the next year are as follows:

Northrup

Division

Hawley

Division

Total
Sales $570,000 $430,000 $1,000,000
Less Variable costs 197,500 235,000 432,500
Contribution margin $372,500 $195,000 $567,500
Less Direct fixed costs 160,500 142,500 303,000
Segment margin $212,000 $52,500 $264,500
Less Allocated common costs 84,000 76,000 160,000
Operating Income (loss) $128,000 $(23,500) $104,500

Operating income for Superior Corporation, as a whole, if the Hawley Division were dropped would be

A. $151,500

B. $52,000

C. $128,000

D. $104,500

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