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Data for January for Bondi Corporation and its two major business segments, Nort

ID: 2397430 • Letter: D

Question

Data for January for Bondi Corporation and its two major business segments, North and South, appear below Sales revenues, North Variable expenses, North Traceable fixed expenses, North Sales revenues, South Variable expenses, South Traceable fixed expenses, South $660,80e $383,000 $ 79,00e $510,80 $291,808 66,000 In addition, common fixed expenses totaled $179,000 and were allocated as follows: $93,000 to the North business segment and $86,000 to the South business segment. A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is: Multiple Choice

Explanation / Answer

                                                                 (Amount in $)

Particulars

North Division

South Division

Sales revenue

660000

510000

Less:

Variable expenses

383000

291000

Total Contribution

277000

219000

Less:

Traceable fixed expenses

79000

66000

Common fixed expenses

93000

86000

Net operating income

105000

67000

Net operating income (company)

105000 + 67000 = 172000

                                                                 (Amount in $)

Particulars

North Division

South Division

Sales revenue

660000

510000

Less:

Variable expenses

383000

291000

Total Contribution

277000

219000

Less:

Traceable fixed expenses

79000

66000

Common fixed expenses

93000

86000

Net operating income

105000

67000

Net operating income (company)

105000 + 67000 = 172000