What would Davenport's income (loss) be if the Jones Division was dropped?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Davenport Incorporated has two divisions, Howard and Jones. The following is the segmented income statement for the past month:

  Howard Jones Total
Sales revenue $ 800,000 $ 600,000 $ 1,400,000
Variable costs 400,000 480,000 880,000
Contribution margin $ 400,000 $ 120,000 $ 520,000
Direct fixed costs 200,000 100,000 300,000
Segment margin $ 200,000 $ 20,000 $ 220,000
Fixed costs (allocated) 150,000 150,000 300,000
Net operating income (loss) $ 50,000 $ (130,000) $ (80,000)

What would Davenport's income (loss) be if the Jones Division was dropped?

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