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The Operations of Knickers Ltd Operating Income for Knickers Ltd

question 2

Multiple Choice

The operations of Knickers Ltd. are divided into the Pacers Division and the Bulls Division. Projections for the next year are as follows: $\begin{array} {llll}&\text { Pacers } & \text { Bulls } & \\&\text { Divisi on } & \text { Division } & \text { Total }\\\text {Sales}&£ 420,000 & £ 252,000 & £ 672,000\\\text {Variable costs}&147,000 & 115,500 & 262,500\\\text {Contributi on margin}&£ 273,000 & £ 136,500 & £ 409,500\\\text {Direct fixed costs}&126,000 & 105,000 & 231,000\\\text {Segment margin}&£ 147,000 & £ 31,500 & £ 178,500\\\text {Allocated common costs}&63,000 &47,250 &110,250\\\text {Operating income (loss) }&£ 84,000 & £(15,750) & £ 68,250\\\end{array}$ Operating income for Knickers Ltd. as a whole if the Bulls Division were dropped would be

Definitions:

Commercial Ventures

Business endeavors undertaken with the aim of making a profit, including a wide range of activities from start-ups to large corporate enterprises.

Donations

Voluntary gifts of money or goods to organizations or individuals, often for charitable purposes or to support a cause.

Social Responsibility

The obligation of individuals, organizations, and businesses to act for the benefit of society at large, often emphasizing sustainability and ethical practices.

Philanthropic

Relating to the act of giving money, goods, time, or effort to support a charitable cause, often with no financial benefit to the giver.