Sugiki Corporation has two divisions: the Alpha Division and the Delta Division.The Alpha Division has sales of $820,000,variable expenses of $369,000,and traceable fixed expenses of $347,300.The Delta Division has sales of $460,000,variable expenses of $294,400,and traceable fixed expenses of $134,100.The total amount of common fixed expenses not traceable to the individual divisions is $97,300.What is the company's net operating income?
A)$135,200
B)$37,900
C)$616,600
D)$519,300

Question

Quizplus · Accepted Answer

The net operating income is calculated by subtracting total expenses from total sales. For Alpha: $820,000 - $369,000 - $347,300 = $103,700. For Delta: $460,000 - $294,400 - $134,100 = $31,500. Total divisional income: $103,700 + $31,500 = $135,200. Subtract common fixed expenses: $135,200 - $97,300 = $37,900.

Sugiki Corporation Has Two Divisions: the Alpha Division and the Delta