Liberty Corporation Has Three Departments Required:
A

Liberty Corporation has three departments. Data for the most recent year is presented below: $$\begin{array} { l l l l } & \underline { \mathrm { A } } & \underline { \mathrm { B } } & \frac { \mathrm { C } } { } \\\text { Sales } & \$ 400 & \$ 200 & \$ 80 \\\text { Variable exp enses } & 128 & 52 & 34 \\\text { Fixed expenses: } & & & \\\text { Unavoidable } & 96 & 52 & 12 \\\text { Avoidable } & 116 & 104 & 54\end{array}$$ Required:
a. Compute the operating income of the company.
b. Compute the contribution margin and operating income of each department.
c. Should any department(s) be eliminated? If any, which one(s) and why?