Question
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 | $ | 305,000 | $ | 178,000 | $ | 483,000 | |||||
| Variable costs | 103,000 | 82,000 | 185,000 | ||||||||
| Contribution margin | $ | 202,000 | $ | 96,000 | $ | 298,000 | |||||
| Direct fixed costs | 89,000 | 75,000 | 164,000 | ||||||||
| Segment margin | $ | 113,000 | $ | 21,000 | $ | 134,000 | |||||
| Allocated common costs | 44,000 | 36,500 | 80,500 | ||||||||
| Operating income (loss) | $ | 69,000 | $ | (15,500 | ) | $ | 53,500 | ||||
Operating income for Winston Corporation, as a whole, if the Blur Division were dropped would be:
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Intermediate Accounting
Authors: Kin Lo, George Fisher
3rd Edition Vol. 1
133865940, 133865943, 978-7300071374
