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URGENT PLEASE !!!! Apple, Inc., has three divisions: N, C, and R. The segmented income statement for last year revealed the following: Apple, Inc. Divisional

URGENT PLEASE !!!!

Apple, Inc., has three divisions: N, C, and R. The segmented income statement for last year revealed the following:

Apple, Inc.

Divisional Profit Summary

N. Division

C. Division

R. Division

Total Company

Sales

533,000

$250,000

$837,000

$1,620,000

Less variable costs

435,000

137,000

472,000

1,044,000

Contribution margin

$ 98,000

$113,000

$365,000 $

$ 576,000

Less direct fixed costs

106,000

100,000

139,000

345,000

Segment margin

($ 8,000)

$ 13,000

$226,000

$ 231,000

Less common fixed costs

120,000

Operating income

$ 111,000

1. How will Apple be affected if the N Division is dropped?

2. Assume the elimination of the N Division causes the sales of the R Division to decrease by 10 percent. How will Apple be affected if the N Division is dropped?

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