The operations of Bridgeton Corporation are divided into the Adams Division and the Carter Division. Projections for the next year are as follows: Adams Division Carter Division Total Sales $ 560,000 $ 336,000 $ 896,000 Variable costs 196,000 154,000 350,000 Contribution margin $ 364,000 $ 182,000 $ 546,000 Direct fixed costs 168,000 140,000 308,000 Segment margin $ 196,000 $ 42,000 $ 238,000 Allocated common costs 84,000 63,000 147,000 Operating income (loss) $ 112,000 $ (21,000 ) $ 91,000 Operating income for Bridgeton Corporation as a whole if the Carter Division were dropped would be:

$49,000

Explanation:

Operating Income = Sales - Variable Cost - Direct Fixed cost - Common Unavoidable Cost

Operating Income = $560,000 - $196,000 - $168,000 - ($84,000+$63,000)

Operating Income = $560,000 - $196,000 - $168,000 - $147,000

Operating Income = $49,000

Therefore, the operating income for Bridgeton Corporation when Carter Division was dropped is $49,000.

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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