Superior Corporation currently has two divisions: Aluminum Division and Wood Division. Given below are the operating results for last year. Since the Wood Division has sustained a loss, the president of Superior Corporation is considering the elimination of this division. All the fixed expenses for the division can be eliminated if the division is dropped. If the Wood Division is dropped, how much higher or lower will Superior Corporation's total net operating income be for the year?Sales $600,000 $300,000 Variable costs 310,000 200,000 Contribution margin 290,000 100,000 fixed expenses for the division 110,000 60,000 Segment margin 180,000 40,000 Allocated common corporate fixed costs 100,000 50,000 Net operating income (loss) $80,000 ($10,000) what is net operating income ?
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In the story, the grasshopper illustrates the theme of “First be prepared, then find time to play.” The Ant is the character who is preparing for the winter by storing up food while the grasshopper is playing around.