The Operations of Winston Corporation Are Divided into the Blink

question 44

Multiple Choice

The operations of Winston Corporation are divided into the Blink Division and the Blur Division.Projections for the next year are as follows:
$$\begin{array} { | l | r | r | r | } \hline & \begin{array} { r } \text { Blink } \\\text { Division }\end{array} & \begin{array} { r } \text { Blur } \\\text { Division }\end{array} & \text { Total } \\\hline \text { Sales } & \$ 280,000 & \$ 168,000 & \$ 448,000 \\\hline \text { Variable costs } & 98,000 & 77,000 & 175,000 \\\hline \text { Contribution margin } & \$ 182,000 & \$ 91,000 & \$ 273,000 \\\hline \text { Direct fixed costs } & 84,000 & 70,000 & 154,000 \\\hline \text { Segment margin } & \$ 98,000 & \$ 21,000 & \$ 119,000 \\\hline \text { Allocated common costs } & 42,000 & 31,500 & 73,500 \\\hline \text { Operating income (loss) } & \$ 56,000 &( \$ 10,500 ) & \$ 45,500 \\\hline\end{array}$$
If the Blur Division were dropped,Blink Division's sales would increase by 30%.If this happened,the operating income for Winston Corporation as a whole would be:

• A) $72,800.
• B) $56,000.
• C) $79,100.
• D) $59,150.

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Definitions:

Comparative Evaluation Methods

A collection of different methods that compare one person’s performance with that of co-workers.

Co-Workers' Performance

The work output and efficiency of employees in relation to their colleagues within the same organization or team.

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Professionals hired from outside an organization to provide expert advice or services in specific areas.

Human Resource Management

The strategic approach to managing employees and workplace culture, focusing on maximizing employee performance and organizational objectives.