The Operations of Knickers Ltd Operating Income for Knickers Ltd

Multiple Choice

The operations of Knickers Ltd. are divided into the Pacers Division and the Bulls Division. Projections for the next year are as follows: $\begin{array} {llll}&\text { Pacers } & \text { Bulls } & \\&\text { Divisi on } & \text { Division } & \text { Total }\\\text {Sales}&£ 420,000 & £ 252,000 & £ 672,000\\\text {Variable costs}&147,000 & 115,500 & 262,500\\\text {Contributi on margin}&£ 273,000 & £ 136,500 & £ 409,500\\\text {Direct fixed costs}&126,000 & 105,000 & 231,000\\\text {Segment margin}&£ 147,000 & £ 31,500 & £ 178,500\\\text {Allocated common costs}&63,000 &47,250 &110,250\\\text {Operating income (loss) }&£ 84,000 & £(15,750) & £ 68,250\\\end{array}$ Operating income for Knickers Ltd. as a whole if the Bulls Division were dropped would be

A) £99,750.
B) £84,000.
C) £68,250.
D) £36,750.