The operations of Smithsonian Corporation are divided into the Manhattan Division and the Bronx Division. Projections for the next year are as follows: Operating income for Smithsonian Corporation as a whole if the Bronx Division were dropped would be
A)$40,000.
B)$22,500.
C)$50,000.
D)$60,000.

Question

The operations of Smithsonian Corporation are divided into the Manhattan Division and the Bronx Division. Projections for the next year are as follows:  Operating income for Smithsonian Corporation as a whole if the Bronx Division were dropped would be
A)$40,000. 
B)$22,500. 
C)$50,000. 
D)$60,000.

Quizplus · Accepted Answer

To find the operating income for the corporation as a whole if the Bronx Division were dropped, we need to subtract the Bronx Division's operating income ($27,500) from the total operating income of both divisions ($50,000). 
$50,000 - $27,500= $22,500. 
Therefore, the answer is B) $22,500.

The Operations of Smithsonian Corporation Are Divided into the Manhattan