The operations of Ranger Corporation are divided into the Stargate Division and the Cosmos Division. Projections for
Fantastic news! We've Found the answer you've been seeking!
Question:
The operations of Ranger Corporation are divided into the Stargate Division and the Cosmos Division. Projections for the next year are as follows:
| | Stargate Division | | Cosmos Division | | Total | ||||||
| Sales | $ | 595,000 | | | $ | 389,000 | | | $ | 984,000 | |
| Less: Variable Costs | | 199,000 | | | | 219,000 | | | | 418,000 | |
| Contribution Margin | $ | 396,000 | | | $ | 170,000 | | | $ | 566,000 | |
| Less: Direct Fixed Costs | | 169,000 | | | | 144,000 | | | | 313,000 | |
| Segment Margin | $ | 227,000 | | | $ | 26,000 | | | $ | 253,000 | |
| Less: Allocated Common Costs | | 98,000 | | | | 74,000 | | | | 172,000 | |
| Operating Income (Loss) | $ | 129,000 | | | $ | (48,000 | ) | | $ | 81,000 | |
| | |||||||||||
Operating income for Ranger Corporation, as a whole, if the Cosmos Division was dropped would be:
$55,000
$81,000
$129,000
$177,000
Expert Answer:
Related Book For 
Quantitative Analysis for Management
ISBN: 978-0132149112
11th Edition
Authors: Barry render, Ralph m. stair, Michael e. Hanna
Posted Date:
