Selzone Corporation Operates Two Divisions with the Following Operating Results

question 203

Multiple Choice

Selzone Corporation operates two divisions with the following operating results from last year:

Management is considering whether the Southern Division should be dropped since it incurred an operating loss last year.Allocated common fixed costs would continue for Selzone Corporation whether the division is dropped or not.
If the Southern Division had been dropped at the beginning of last year,what would the total operating income for Selzone Corporation have been for the year?

• A)$15,000
• B)$75,000
• C)$45,000
• D)$90,000

---

Definitions:

Gluteus Minimus

The smallest of the three gluteal muscles, located beneath the gluteus medius, it works to abduct and medially rotate the thigh.

Gluteus Medius

A muscle located on the lateral aspect of the upper thigh, important for stabilizing the hip and pelvis during walking or running.

Gluteus Maximus

The largest and most superficial of the three gluteal muscles, responsible for movement of the hip and thigh.

Biceps Femoris

A muscle of the posterior thigh that is part of the hamstrings group, involved in knee flexion and hip extension.