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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 costs Segment margin Allocated common costs Operating income poss Blink Division $370,000 116,000 Blur Division $196,000 Total $566,000 95,000 $254,000 $101,000 211,000 $355.000 102.000 $152,000 88,000 $13,000 190,000 $165,000 57,000 $95.000 49,500 $3600) $ 58,500 106,500 If the Blur Division were dropped, Blink Division's sales would increase by 35%. If this happened, the operating income for Winston Corporation, as a whole, would be O $95,000/ O $134,400 $78,975 O $128,250 References
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