Question 3 (of 10) 3. Gunderman Corporation has two divisions: the Alpha Divisio

Question

Question 3 (of 10) 3. Gunderman Corporation has two divisions: the Alpha Division and the Charlie Division. The Alpha Division has sales of $265,000, variable expenses of $141,600, and traceable fixed expenses of $66,800. The Charlie Division has sales of $575000, variable expenses of $321,800, and traceable fixed expenses of $126,300. amount of common fixed expenses not traceable to the individual divisions is $126.200. What is the company's net operating income? O $183500 O $376,600 O $57.300 O $253,20o O Type here to search

Explanation / Answer

Gunderman Corporation Alpha Div. Charlie Div Total Sales $                265,000 $               575,000 $        840,000 Less: $                   -   Variable Exp. $                141,600 $               321,800 $        463,400 Net Operating Income $                123,400 $               253,200 $        376,600 Less: Traceable Fixed Exp. $                  66,800 $               126,300 $        193,100 Non Gtraceable fixed exp $                            -   $                           -   $        126,200 $                   -   Net Income $                  56,600 $               126,900 $          57,300 Hence, the net operating Income is $ 376600. Note:    Net Operating Income = total revenue       -          operating expenses Fixed expenses are not consiedred while calculating Net Operating Income, because these are not operating expenses

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