The Operations of Knickers Corporation Are Divided into the Pacers

question 96

Multiple Choice

The operations of Knickers Corporation are divided into the Pacers Division and the Bulls Division.Projections for the next year are as follows: $\begin{array}{lccc}&\text { Pacers } & \text { Bulls } & \\&\text { Division } & \text { Division } & \text { Total }\\\text { Sales } & \$ 420,000 & \$ 252,000 & \$ 672,000 \\ \text { Variable costs } & 147,000 & 115,500 & 262,500 \\ \text { Contribution margin } & \$ 273,000 & \$ 136,500 & \$ 409,500 \\ \text { Direct fixed costs } & 126,000 & 105,000 & 231,00 \\\text {Segment margin } & \$ 147,000 & \$ 31,500 & \$ 178,500 \\ \text {Allocated common costs } & 63,000 & 47,250 & 110,250 \\\text { ting income (loss) } & \$ 84,000 & \$ 1 5 , 7 5 0 &\$68,250 \\\end{array}$ What would be the operating income for Knickers Corporation as a whole if the Bulls Division were dropped?

• A)$36,750
• B)$68,250
• C)$84,000
• D)$99,750

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Definitions:

Defense Mechanism

Psychological strategies brought into play by individuals, groups, and even nations to cope with reality and to maintain a self-image by reducing the anxiety they feel when faced with stressful situations.

Projection

A defense mechanism where an individual attributes their unwanted thoughts or feelings onto someone else.

Sublimation

A defense mechanism where socially unacceptable impulses or idealizations are transformed into socially acceptable actions or behavior, often resulting in a long-term conversion of the initial impulse.

Defense Mechanism

Psychological strategies brought into play by individuals, unconsciously, to protect themselves from anxiety and to cope with reality.