The Operations of Balance Corporation Are Divided into the Kaplan

question 56

Essay

The operations of Balance Corporation are divided into the Kaplan Division and the Norton Division.Projections for the next year are as follows:
$$\begin{array} { | l | r | r | r | } \hline & \begin{array} { r } \text { Kaplan } \\\text { Division }\end{array} & \begin{array} { r } \text { Norton } \\\text { Division }\end{array} & \text { Total } \\\hline \text { Sales } & \$ 1,200,000 & \$ 600,000 & \$ 1,800,000 \\\hline \text { Variable costs } & 480,000 & 360,000 & 840,000 \\\hline \text { Contribution margin } & \$ 720,000 & \$ 240,000 & \$ 960,000 \\\hline \text { Direct fixed costs } & 160,000 & 90,000 & 250,000 \\\hline \text { Segment margin } & \$ 560,000 & \$ 150,000 & \$ 710,000 \\\hline \begin{array} { l } \text { Allocated common } \\\text { costs }\end{array} & 360,000 & 180,000 & 540,000 \\\hline \begin{array} { l } \text { Operating income } \\\text { (loss) }\end{array} & \$ 200,000 & \$ 30,000 ) & \$ 170,000 \\\hline\end{array}$$

Required:
a.Operating income for Balance Corporation as a whole if the Norton Division were dropped would be
b.If the Norton Division were dropped,Kaplan Division's sales would increase by 45%.If this happened,the operating income for Balance Corporation as a whole would be:

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Definitions:

Behavior And Consciousness

The study of how individual actions, thoughts, and feelings are connected to and aware of one's own existence and mental processes.

Psychological Laboratory

A controlled environment where experiments are conducted to study various aspects of human behavior and cognitive processes.

1879

The year often considered the birth of modern psychology, marked by Wilhelm Wundt establishing the first experimental psychology lab in Leipzig, Germany.

E. B. Titchener

A psychologist who is best known for developing structuralism, an early school of psychology that aimed to analyze the adult mind in terms of the simplest definable components.