Younie 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?
A) $56,800
B) $69,700
C) $72,700
D) $45,800

Question

Quizplus · Accepted Answer

The total of the divisional segment margins ($42,800 + $29,900 = $72,700) minus the corporation's net operating income ($26,900) gives the amount of the common fixed expense not traceable to the individual divisions: $72,700 - $26,900 = $45,800.

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