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Compute the Operating income for Hart Corporation

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Problem - The operations of Hart Corporation Ltd are divided into the Will Division and the Aloy Division. Projections for the next year are as follows:

 

Will Division

Aloy Division

Total

Sales

$560,000

$336,000

$896,000

Less: Variable costs

196,000

154,000

350,000

Contribution margin

$364,000

$182,000

$546,000

Less: Direct fixed costs

168,0000

140,000

308,000

Segment margin

$196,000

$42,000

$238,000

Less: Allocated common cost

84,000

63,000

147,000

Operating income (loss)

$112,000

$(21,000)

$91,000

Compute the Operating income for Hart Corporation, as a whole, if the Aloy Division were dropped?

a. $133,000

b. $112,000

c. $91,000.

d. $49,000.

Reference no: EM132453250

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