Answered step by step
Verified Expert Solution
Question
00
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 | $ | 340,000 | $ | 190,000 | $ | 530,000 | |||||
Variable costs | 110,000 | 89,000 | 199,000 | ||||||||
Contribution margin | $ | 230,000 | $ | 101,000 | $ | 331,000 | |||||
Direct fixed costs | 96,000 | 82,000 | 178,000 | ||||||||
Segment margin | $ | 134,000 | $ | 19,000 | $ | 153,000 | |||||
Allocated common costs | 51,000 | 43,500 | 94,500 | ||||||||
Operating income (loss) | $ | 83,000 | $ | (24,500 | ) | $ | 58,500 | ||||
Operating income for Winston Corporation, as a whole, if the Blur Division were dropped would be:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started