Business, 31.08.2021 21:20 kakkakak1320
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 $ 310,000 $ 180,000 $ 490,000
Variable costs 104,000 83,000 187,000
Contribution margin $ 206,000 $ 97,000 $ 303,000
Direct fixed costs 90,000 76,000 166,000
Segment margin $ 116,000 $ 21,000 $ 137,000
Allocated common costs 45,000 37,500 82,500
Operating income (loss) $ 71,000 $ (16,500) $ 54,500
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:
Answers: 1
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