Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Products Division's divisional segment margin is $38,300 and the Export Products Division's divisional segment margin is $90,700. The total amount of common fixed expenses not traceable to the individual divisions is $102,000. What is the company's net operating income (loss)?
A) $231,000
B) $129,000
C) $27,000
D) ($129,000)

Question

Quizplus · Accepted Answer

The company's net operating income is calculated by adding the divisional segment margins and then subtracting the common fixed expenses. Therefore, $38,300 (Governmental Products Division) + $90,700 (Export Products Division) - $102,000 (common fixed expenses) = $27,000.

Dukelow Corporation Has Two Divisions: the Governmental Products Division and the Export