The Operations of Bridgeton Corporation Are Divided into the Adams

question 51

Multiple Choice

The operations of Bridgeton Corporation are divided into the Adams Division and the Carter Division. Projections for the next year are as follows:
$\begin{array}{lrr}&\text { Adams }\\&\text { Division }& \text { CarterDivision }& \text { Total }\\ \text {Sales } &\$560,000&\$336,000&\$896,000\\ \text { Variable costs } &\underline{196,000}&\underline{154,000}&\underline{350,000}\\ \text { Contribution margin} &\$364,000&\$182,000&\$546,000\\ \text { Direct fixed costs} &\underline{168,000}&\underline{140,000}&\underline{308,000}\\ \text {Segment margin } &\$196,000&\$42,000&\$238,000\\ \text {Allocated common costs } &\underline{84,000}&\underline{63,000}&\underline{147,000}\\ \text { Operating income (loss) } &\underline{\$112,000}&\underline{\$(21,000) }&\underline{\$91,000}\end{array}$

Operating income for Bridgeton Corporation as a whole if the Carter Division were dropped would be:

• A) $133,000.
• B) $112,000.
• C) $91,000.
• D) $49,000.

---

Definitions:

MCC

MCC could refer to various concepts depending on the context, including Merchant Category Code in financial transactions, but without additional context, a precise definition cannot be provided.

Capital Components

Different sources of capital that a company uses to finance its operations and investments, including debt, equity, and preferred stock.

Averaging

A strategy of reducing market risk in investment portfolios by consistently investing a fixed dollar amount over a period, regardless of the asset's price.

Securities

Assets signifying either an equity stake in a company listed on the stock market, a debt investment in a government entity or a business, or entitlement to ownership through an option.