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 $ 635,000 $ 361,000 $ 996,000 Variable costs 211,000 169,000 380,000 Contribution margin $ 424,000 $ 192,000 $ 616,000 Direct fixed costs 183,000 155,000 338,000 Segment margin $ 241,000 $ 37,000 $ 278,000 Allocated common costs 94,000 78,000 172,000 Operating income (loss) $ 147,000 $ (41,000) $ 106,000 Operating income for Bridgeton Corporation as a whole if the Carter Division were dropped would be:
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 $ 635,000 $ 361,000 $ 996,000 Variable costs 211,000 169,000 380,000 Contribution margin $ 424,000 $ 192,000 $ 616,000 Direct fixed costs 183,000 155,000 338,000 Segment margin $ 241,000 $ 37,000 $ 278,000 Allocated common costs 94,000 78,000 172,000 Operating income (loss) $ 147,000 $ (41,000) $ 106,000 Operating income for Bridgeton Corporation as a whole if the Carter Division were dropped would be:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | $ 635,000 | $ 361,000 | $ 996,000 |
| Variable costs | 211,000 | 169,000 | 380,000 |
| Contribution margin | $ 424,000 | $ 192,000 | $ 616,000 |
| Direct fixed costs | 183,000 | 155,000 | 338,000 |
| Segment margin | $ 241,000 | $ 37,000 | $ 278,000 |
| Allocated common costs | 94,000 | 78,000 | 172,000 |
| Operating income (loss) | $ 147,000 | $ (41,000) | $ 106,000 |
Operating income for Bridgeton Corporation as a whole if the Carter Division were dropped would be:
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