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.

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The Answer of 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.

The Operations of Knickers Ltd Operating Income for Knickers Ltd