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 TotalSales$280,000 $168,000 $448,000 Variable costs 98,000 77,000 175,000 Contribution margin$182,000 $91,000 $273,000 Direct fixed costs 84,000 70,000 154,000 Segment margin$98,000 $21,000 $119,000 Allocated common costs 42,000 31,500 73,500 Operating income (loss)$56,000 $(10,500) $45,500 Operating income for Winston Corporation, as a whole, if the Blur Division were dropped would be:
A. $66,500.
B. $45,500.
C. $24,500.
D. $56,000.
Answer: C
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