1. Brummitt Corporation has two divisions: the BAJ Division and the CBB Division
ID: 2485824 • Letter: 1
Question
1.
Brummitt Corporation has two divisions: the BAJ Division and the CBB Division. The corporation's net operating income is $12,300. The BAJ Division's divisional segment margin is $84,100 and the CBB Division's divisional segment margin is $48,700. What is the amount of the common fixed expense not traceable to the individual divisions?
$132,800
$96,400
$61,000
$120,500
2. Insider Corporation has two divisions, J and K. During March, the contribution margin in Division J was $31,000. The contribution margin ratio in Division K was 40%, its sales were $126,000, and its segment margin was $33,000. The common fixed expenses in the company were $41,000, and the company's net operating income was $18,500. The segment margin for Division J was:
$59,500
$33,000
$26,500
$8,000
3.Gunderman Corporation has two divisions: the Alpha Division and the Charlie Division. The Alpha Division has sales of $260,000, variable expenses of $140,100, and traceable fixed expenses of $66,300. The Charlie Division has sales of $570,000, variable expenses of $319,800, and traceable fixed expenses of $125,500. The total amount of common fixed expenses not traceable to the individual divisions is $125,200. What is the company's net operating income?
$178,300
$250,200
$370,100
$53,100
4.
Khanam Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.
What is the net operating income for the month under absorption costing?
$4,900
$32,100
$20,400
$4,900
Brummitt Corporation has two divisions: the BAJ Division and the CBB Division. The corporation's net operating income is $12,300. The BAJ Division's divisional segment margin is $84,100 and the CBB Division's divisional segment margin is $48,700. What is the amount of the common fixed expense not traceable to the individual divisions?
Explanation / Answer
1)Net operating income(total)= sumof operting income individual
12300=84100+48700-tcommon fixed expense
common fixed expense=84100+48700-12300=$120,500
3)operating income of Alpha=sales-var exp-trace fixed exp
=260,000-140,100-66,300=53,600
operating income of charlie=sales-var exp-trace fixed exp
=570,000-319,800-125,500=124,700
Company net income=53600+124700-125200=$53100
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