Wilson Inc. has three divisions, Alpha, Beta and Gamma. Following is the income statement for the previous year:

	Alpha			Beta				Gamma						Total
Sales	$	1,000,000			$	575,000			$	425,000					$	2,000,000
Variable Costs		400,000				345,000				300,000						1,045,000
Contribution Margin		600,000				230,000				125,000						955,000
Fixed Costs		375,000				215,625				159,375						750,000
Profit Margin		225,000				14,375				(34,375	)					205,000

Of the fixed costs, $300,000 is for corporate costs and is allocated equally to the three divisions.

1. How much does Gamma Division have in direct fixed costs?

2. Prepare a table showing the difference between keeping Gamma and dropping Gamma

	Keep Gamma	Drop Gamma	Difference Change in NOI
Sales
Variable Expenses
Contribution Margin
Direct Fixed Expenses
Common Fixed Expenses
NOI

3. What is Gamma Division's segment margin?

4. What would Wilson's profit margin be if Gamma Division were dropped? What should Wilson do, keep or drop Gamma Division?

SHOW ALL WORK AND CALCULATIONS!