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

---

Definitions:

Depression

A common and serious mood disorder featuring persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Rage and Aggression

Intense, uncontrollable anger that can lead to verbal or physical hostility towards others or oneself.

Treatment for Adolescents with Depression Study (TADS)

A landmark research project evaluating the effectiveness of different treatments for adolescents suffering from depression.

Antidepressant Medication

Antidepressant medication is used to treat major depressive disorder and other conditions by balancing chemicals in the brain to improve mood and emotions.