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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

$

700,000

$

560,000

$

1,260,000

Less: Variable costs

230,000

300,000

530,000

Contribution margin

$

470,000

$

260,000

$

730,000

Less: Direct fixed costs

180,000

175,000

355,000

Segment margin

$

290,000

$

85,000

$

375,000

Less: Allocated common costs

110,000

115,000

225,000

Operating income (loss)

$

180,000

$

(30,000)

$

150,000

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

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