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 | $ | 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:
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Introduction to Managerial Accounting
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
5th Canadian edition
77429494, 1259105709, 1260480798, 978-1259105708
