Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 | $ | 290,000 | $ | 172,000 | $ | 462,000 | |||||
Variable costs | 100,000 | 79,000 | 179,000 | ||||||||
Contribution margin | $ | 190,000 | $ | 93,000 | $ | 283,000 | |||||
Direct fixed costs | 86,000 | 72,000 | 158,000 | ||||||||
Segment margin | $ | 104,000 | $ | 21,000 | $ | 125,000 | |||||
Allocated common costs | 41,000 | 33,500 | 74,500 | ||||||||
Operating income (loss) | $ | 63,000 | $ | (12,500 | ) | $ | 50,500 | ||||
Operating income for Winston Corporation, as a whole, if the Blur Division were dropped would be:
Multiple Choice
-
$50,500.
-
$29,500.
-
$75,500.
-
$63,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started