The operations of Winston Corporation are divided into the Blink Division and the Blur Division....
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Accounting
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 $ 325,000 $186,000 $ 511,000
Variable costs 107,000 86,000 193,000
Contribution margin $ 218,000 $ 100,000 $ 318,000
Direct fixed costs 93,000 79,000 172,000
Segment margin $125,000 $ 21,000 $ 146,000
Allocated common costs 48,000 40,500 88,500
Operating income (loss) $ 77,000 $ (19,500 ) $ 57,500
If the Blur Division were dropped, Blink Division's sales would increase by 35%. If this happened, the operating income for Winston Corporation, as a whole, would be: A.$103,950.
B.$77,000.
C.$112,800.
D.$77,625.
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