The operations of Knickers Corporation are divided into the Pacers Division and the Bulls Division. Projections for the next year are as follows: Sales revenue Variable expenses Contribution margin Direct fixed expenses Segment margin Allocated common costs Total relevant benefit (loss) Operating Total $672,000 262,500 $409,500 231,000 $ 31,500 $178,500 47,250 110,250 $(15,750) $ 68,250 income for Knickers Corporation as a whole if the Bulls Division were dropped would be $84,000. O$99,750. $68,250. Pacers Division $420,000 147,000 $273,000 $45,750. $36,750. 126,000 $147,000 Bulls Division $252,000 115,500 $136,500 105,000 63,000 $ 84,000
The operations of Knickers Corporation are divided into the Pacers Division and the Bulls Division. Projections for the next year are as follows: Sales revenue Variable expenses Contribution margin Direct fixed expenses Segment margin Allocated common costs Total relevant benefit (loss) Operating Total $672,000 262,500 $409,500 231,000 $ 31,500 $178,500 47,250 110,250 $(15,750) $ 68,250 income for Knickers Corporation as a whole if the Bulls Division were dropped would be $84,000. O$99,750. $68,250. Pacers Division $420,000 147,000 $273,000 $45,750. $36,750. 126,000 $147,000 Bulls Division $252,000 115,500 $136,500 105,000 63,000 $ 84,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![The operations of Knickers Corporation are divided into the Pacers Division and the Bulls Division.
Projections for the next year are as follows:
$68,250.
$45,750.
Pacers
Division
$420,000
147,000
$273,000
126,000
$147,000
Sales revenue
Variable expenses
Contribution margin
Direct fixed expenses
Segment margin
$ 31,500
Allocated common costs
47,250
Total relevant benefit (loss)
$(15.750)
Operating income for Knickers Corporation as a whole if the Bulls Division were dropped would be
O $84,000.
O$99,750.
$36,750.
Bulls
Division
$252,000
115,500
$136,500
105,000
63,000
$ 84,000
Total
$672,000
262,500
$409,500
231,000
$178,500
110,250
$ 68.250](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9ddaa374-92de-45cb-bfa1-5b2e672413e7%2F0a1dbed5-8d3a-4f32-b6cd-72315327c03b%2Fszvenuo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The operations of Knickers Corporation are divided into the Pacers Division and the Bulls Division.
Projections for the next year are as follows:
$68,250.
$45,750.
Pacers
Division
$420,000
147,000
$273,000
126,000
$147,000
Sales revenue
Variable expenses
Contribution margin
Direct fixed expenses
Segment margin
$ 31,500
Allocated common costs
47,250
Total relevant benefit (loss)
$(15.750)
Operating income for Knickers Corporation as a whole if the Bulls Division were dropped would be
O $84,000.
O$99,750.
$36,750.
Bulls
Division
$252,000
115,500
$136,500
105,000
63,000
$ 84,000
Total
$672,000
262,500
$409,500
231,000
$178,500
110,250
$ 68.250
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