Question 16 (of 25) value. 12.00 points MC Qu. 73 Gunderman Corporation has two.

Question

Question 16 (of 25) value. 12.00 points MC Qu. 73 Gunderman Corporation has two... 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? O $250.200 O $53,100 O $178.300 O $370,100 References Multiple Choice 1 Easy

Explanation / Answer

The correct answer is $ 53,100

Note :

Note 2: Total Company's Figures = Aplha Division's Figures + Charlie Division's Figures

Total Company Alpha Charlie Sales $ 830,000 $ 260,000 $ 570,000 Less:Variable Expense 459,900 140,100 319,800 Contribution Margin 370,100 119,900 250,200 Less:Traceable Fixed Expenses 191,800 66,300 125,500 Segment Margin 178,300 53,600 124,700 Less:Common Fixed Expenses 125,200 Net Operating Income $ 53,100

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