Central administration allocates its costs of $1 million to the two operating divisions (A and B) of the company. These costs are not avoidable if...

Central administration allocates its costs of $1 million to the two operating divisions (A and B) of the company. These costs are not avoidable if one division is dropped. With an equal allocation of these costs to both divisions, Division A has a profit of $300,000 and Division B has a loss of $100,000.