The operations of Balance Corporation are divided into the Kaplan Division and the Norton Division. Projections for the next year are as follows:
Required:
a. Operating income for Balance Corporation, as a whole, if the Norton Division were dropped would be:
b. If the Norton Division were dropped, Kaplan Division's sales would increase by 45%. If this happened, the operating income for Balance Corporation as a whole would be:
Correct Answer:
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