The Operations of Slickers Corporation Are Divided into the North

Multiple Choice

The operations of Slickers Corporation are divided into the North Division and the South Division.Projections for the next year are as follows: $\begin{array}{lrrr}&\text { North } & \text { South } & \\&\text { Division } & \text { Division } & \text { Total }\\\text { Sales } & \$ 420,000 & \$ 252,000 & \$ 672,000 \\\text { Variable costs } & 147,000 & 115,500 & 262,500\\\text { Contribution margin } & \$ 273,000 & \$ 136,500 & \$ 409,500 \\\text { Direct fixed costs } & 126,000 & 105,000 & 231,000\\\text { Segment margin } & \$ 147,000 & \$ 31,500 & \$ 178,500 \\\text { Allocated common costs } & 63,000 & 47,250 & 110,250 \\\text { Operating income (loss) } & \$ 84,000 & \$(15,750) & \$ 68,250\\\end{array}$ Suppose the South Division were dropped.What would be the operating income for Slickers Corporation?

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