Shedding Company has two divisions with the following segment margins for the current year: Northern, $400,000; Southern, $800,000. Common expenses of the company are $100,000. What is Shedding Company's net income?
A) $300,000
B) $350,000
C) $700,000
D) $1,100,000

Question

Quizplus · Accepted Answer

Net income = (Northern segment margin + Southern segment margin) - Common expenses= ($400,000 + $800,000) - $100,000= $1,100,000

Shedding Company Has Two Divisions with the Following Segment Margins