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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 Variable
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 (loss) Blink Division $310,000 104,000 $206,000 90,000 $116,000 45,000 $ 71,000 Blur Division Total $180,000 $ 490,000 83,000 187,000 $ 97,000 $ 303,000 76,000 166,000 $ 21,000 $137,000 37,500 82,500 $ (16,500) $ 54,500 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: Multiple Choice $95,850 $73,575 $71,000 $105,600
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