Lavandyr Company has two divisions with the following segment margins for the current year: Northern, $300,000 and Southern, $500,000.Common expenses of the company are $75,000.What is Lavandyr Company's income?
A) $360,000
B) $725,000
C) $215,000
D) $420,000

Question

Quizplus · Accepted Answer

Lavandyr Company's income = Income from Northern division + Income from Southern division - Common expenses = $300,000 + $500,000 - $75,000 = $725,000

Lavandyr Company Has Two Divisions with the Following Segment Margins