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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 $ 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.

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