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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: Sales
The operations of Winston Corporation are divided into the Blink Division and the Blur Division. Projections for the next year are as follows: Sales Variable costs Contribution margin Direct fixed costa Segment margin Allocated common costs Operating income (loss)) Blink Division Division $315,000 Blur 105,000 $210,000 91,000 $119,000 Total $182,000 $497,000 84,000 $ 98,000 77,000 189,000 $308,000 $ 21,000 38,500 168,000 $140,000 $(17,500) $55,500 46,000 $ 73,000 84,500 If the Blur Division were dropped, Blink Division's sales would increase by 40%. If this happened, the operating income for Winston Corporation as a whole would be:
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