The ARB Company has two divisions: Electronics and DVD/Video Sales. Electronics has traceable fixed expenses of $146,280 and the DBD/Video Sales has traceable fixed expenses of $81,765. If ARB Company has a total of $322,490 in fixed expenses, what are its common fixed expenses?
A)$94,445
B)$322,490
C)$228,045
D)$47,223

Question

Quizplus · Accepted Answer

The common fixed expenses are calculated by subtracting the sum of the traceable fixed expenses of both divisions from the total fixed expenses: $322,490 - ($146,280 + $81,765) = $94,445.

The ARB Company Has Two Divisions: Electronics and DVD/Video Sales