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  3. . selzone corporation operates two divisions with

. Selzone Corporation operates two divisions with the following operating results from last year:...

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Accounting

. Selzone Corporation operates two divisions with the following operating results from last year:
Northern
Division Southern
Division Total
Sales $600,000 $300,000 $900,000
Variable costs $310,000 $200,000 $510,000
Contribution margin $290,000 $100,000 $390,000
Avoidable fixed costs $110,000 $70,000 $180,000
Allocated common fixed costs $90,000 $45,000 $135,000
Operating income (loss) $90,000 $(15,000) $75,000
Management is considering whether the Southern Division should be dropped since it incurred an operating loss last year. Allocated common fixed costs would continue for Selzone Corporation whether the division is dropped or not.
i) If the Southern Division had been dropped at the beginning of last year, what would the total operating income for Selzone Corporation have been for the year?
A) $15,000
B) $75,000
C) $45,000
D) $90,000

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