The Operations of Slickers Corporation Are Divided into the North

question 110

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

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

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Definitions:

Cohesive

Characterized by unity and sticking together; forming a whole or working closely as a unified entity.

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A term referring to practices or events that are not strictly formal but still adhere to certain established norms or rules.

Formal Group

An official group formed within an organization, designed with a specific purpose and structured roles.

Informal Group

A naturally occurring group formed by individuals within an organization based on personal relationships and common interests.