The Operations of Winston Corporation Are Divided into the Blink

question 45

Multiple Choice

The operations of Winston Corporation are divided into the Blink Division and the Blur Division. Projections for the next year are as follows:
$\begin{array}{llr}&\text { Blink Division }&\text { Blur Division }&\text { Total }\\ \text { Sales} &\$280,000&\$168,000&\$448,000\\ \text { Variable costs } &98,000&77,000&175,000\\ \text { Contribution margin } &\$182,000&\$91,000&\$273,000\\ \text { Direct fixed costs} &84,000&70,000&154,000\\ \text { Segment margin} &\$98,000&\$21,000&\$119,000\\ \text { Allocated common costs} &42,000&31,500&73,500\\ \text { Operating income (loss) } &\$56,000&\$(10,500) &\$45,500\\\end{array}$

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If the Blur Division were dropped, Blink Division's sales would increase by 30%. If this happened, the operating income for Winston Corporation as a whole would be:

• A) $72,800.
• B) $56,000.
• C) $79,100.
• D) $59,150.

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Definitions:

Dentin

The hard but porous tissue located below the enamel and cementum of the teeth, which surrounds the core of dental pulp.

Crown

The visible part of a tooth above the gum line, or a type of dental restoration that fully covers or "caps" a damaged tooth.

Peristalsis

The involuntary contractions and relaxations of muscles in the digestive tract that move food along the digestive process.

Intravenous Nourishment

The delivery of nutrition directly into the bloodstream, bypassing the digestive system, often used for patients who cannot eat normally.