Younie Corporation has two divisions: the South Division and the West Division. The corporation's net operating income is $84,300. The South Division's divisional segment margin is $48,200 and the West Division's divisional segment margin is $172,000. What is the amount of the common fixed expense not traceable to the individual divisions?
A) $256,300
B) $220,200
C) $135,900
D) $132,500

Question

Quizplus · Accepted Answer

The total segment margin of both divisions is $220,200 ($48,200 + $172,000). Since the net operating income of the corporation is $84,300, the common fixed expenses not traceable to the individual divisions is:
$220,200 - $84,300 = $135,900 (Option C).

Younie Corporation Has Two Divisions: the South Division and the West