Question

A Corporation has two divisions: the South Division and the West Division. The corporation's net operating income is $26,900. The South Division's divisional segment margin is $42,800 and the West Division's divisional segment margin is $29,900. What is the amount of the common fixed expense not traceable to the individual divisions

Answer 1

Answer:

$45,800

Explanation:

Common fixed expense not traceable to the individual divisions = South division's divisional segment margin + west division's divisional segment - corporation's net operating income

Common fixed expense not traceable to the individual divisions = $42,800 + $29,900 - $26,900

Common fixed expense not traceable to the individual divisions = $45,800