The operations of Bridgeton Corporation are divided into the Adams Division and the Carter Division. Projections for the next year are as follows: Adams Division Carter Division Total Sales$560,000 $336,000 $896,000 Variable costs 196,000 154,000 350,000 Contribution margin$364,000 $182,000 $546,000 Direct fixed costs 168,000 140,000 308,000 Segment margin$196,000 $42,000 $238,000 Allocated common costs 84,000 63,000 147,000 Operating income (loss)$112,000 $(21,000) $91,000 Operating income for Bridgeton Corporation as a whole if the Carter Division were dropped would be:
A. $49,000.
B. $91,000.
C. $133,000.
D. $112,000.
Answer: A
You might also like to view...
The statement of retained earnings relates the income statement to the balance sheet by showing how the Retained Earnings account changed during the accounting period
Indicate whether the statement is true or false
How do frames shape our view of reality?
What will be an ideal response?
A _______ is the set of tools and processes a firm uses to identify, attract, and retain customers and to leverage its relationships with customers
a. customer relationship management (CRM) system b. customer database c. market database d. prospecting plan
Which of the following does NOT explain why sometimes teams do not select the best solution to a problem?
a. Finding the best solution takes too long. b. There are trade-offs among alternative good solutions. c. The problem-solving process is disrupted by emotional issues. d. Decision making is often too rational.