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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 $ 320,000 $ 184,000 $ 504,000
Variable costs 106,000 85,000 191,000
Contribution margin $ 214,000 $ 99,000 $ 313,000
Direct fixed costs 92,000 78,000 170,000
Segment margin $ 122,000 $ 21,000 $ 143,000
Allocated common costs 47,000 39,500 86,500
Operating income (loss) $ 75,000 $ (18,500 ) $ 56,500

Operating income for Winston Corporation, as a whole, if the Blur Division was dropped would be:

$93,500.

$75,000.

$56,500.

$35,500.

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