Business, 31.03.2020 03:50, yazmincruz3766
The operations of Knickers Corporation are divided into the Pacers Division and the Bulls Division. Projections for the next year are as follows:
Pacers Division Bulls Division Total
Sales revenue $420,000 $252,000 $672,000
Variable expenses 147,000 115,500 262,500
Contribution margin $273,000 $136,500 $409,500
Direct fixed expenses 126,000 105,000 231,000
Segment margin $147,000 $31,500 $178,500
Allocated common costs 63,000 47,250 110,250
Total relevant benefit (loss) $84,000 $(15,750) $68,250
Operating income for Knickers Corporation as a whole, if the Bulls Division were dropped, would be .
a) $99,750 b) $36,750 c) $84,000 d) $68,250
Answers: 3
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