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The operations of Winston Corporation are divided into the Blink Division and the Blur Division. Projections for the next year are as follows: Blink Division
The operations of Winston Corporation are divided into the Blink Division and the Blur Division. Projections for the next year are as follows:
Blink Division | Blur Division | Total | |||||||||
Sales | $ | 345,000 | $ | 191,000 | $ | 536,000 | |||||
Variable costs | 111,000 | 90,000 | 201,000 | ||||||||
Contribution margin | $ | 234,000 | $ | 101,000 | $ | 335,000 | |||||
Direct fixed costs | 97,000 | 83,000 | 180,000 | ||||||||
Segment margin | $ | 137,000 | $ | 18,000 | $ | 155,000 | |||||
Allocated common costs | 52,000 | 44,500 | 96,500 | ||||||||
Operating income (loss) | $ | 85,000 | $ | (26,500 | ) | $ | 58,500 | ||||
Operating income for Winston Corporation, as a whole, if the Blur Division was dropped would be:
$85,000.
$111,500.
$58,500.
$40,500.
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