Mathematics, 15.04.2020 01:52 Ostritch8336
The operations of Knickers Corporation are divided into the Pacers division and the Bulls division. Projections for the next year are as follows:
Pacers Bulls
Division Division Total
Sales revenue $420,000 $252,000 $672,000
Variable expenses 147,000 115,500 262,500
Contribution margin $273,000 $136,500 $409,500
Direct fixed expenses 126,000 105,000 231,000
Segment margin $147,000 $ 31,500 $178,500
Allocated common costs 63,000 47,250 110,250
Total relevant benefit (loss) $ 84,000 $(15,750) $ 68,250
Operating income for Knickers Corporation as a whole if the Bulls division were dropped would be:
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The operations of Knickers Corporation are divided into the Pacers division and the Bulls division....
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