The operations of Superior Corporation are divided into the Northrup Division and the Hawley Division.Projections for the next year are as follows: Operating income for Superior Corporation,as a whole,if the Hawley Division were dropped would be
A)$45,000
B)$80,000
C)$100,000
D)$120,000

Question

Quizplus · Accepted Answer

The correct answer is A because if the Hawley Division were dropped, the operating income for Superior Corporation would be $45,000. This is because the operating income for the Northrup Division is $120,000 and the operating income for the Hawley Division is -$75,000.

The Operations of Superior Corporation Are Divided into the Northrup