The Operations of Slickers Corporation Are Divided into the North

question 104

Multiple Choice

The operations of Slickers Corporation are divided into the North Division and the South Division.Projections for the next year are as follows: $\begin{array}{lrrr}&\text { North } & \text { South } & \\&\text { Division } & \text { Division } & \text { Total }\\\text { Sales } & \$ 420,000 & \$ 252,000 & \$ 672,000 \\\text { Variable costs } & 147,000 & 115,500 & 262,500\\\text { Contribution margin } & \$ 273,000 & \$ 136,500 & \$ 409,500 \\\text { Direct fixed costs } & 126,000 & 105,000 & 231,000\\\text { Segment margin } & \$ 147,000 & \$ 31,500 & \$ 178,500 \\\text { Allocated common costs } & 63,000 & 47,250 & 110,250 \\\text { Operating income (loss) } & \$ 84,000 & \$(15,750) & \$ 68,250\\\end{array}$ Suppose the South Division were dropped.What would be the operating income for Slickers Corporation?

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

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Definitions:

Thoracic Duct

The largest lymphatic vessel in the body which transports lymph and chyle from the lower and left side of the body to the bloodstream.

Lymphatic Ducts

Large vessels of the lymphatic system that drain lymph from various parts of the body back into the bloodstream.

Laryngopharynx

The lower part of the pharynx just below the oropharynx and nasopharynx and above the esophagus and larynx, involved in both respiration and digestion.

Oropharynx

A part of the pharynx located between the soft palate and the upper edge of the epiglottis, involved in swallowing and speech.