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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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