Criblez Corporation has two divisions: Blue Division and Gold Division.The following report is for the most recent operating period: What is the company's overall net operating income if it operates at the break-even points for its two divisions?
A)$0
B)$(245, 960)
C)$(68, 960)
D)$30, 230

Question

Criblez Corporation has two divisions: Blue Division and Gold Division.The following report is for the most recent operating period:  What is the company's overall net operating income if it operates at the break-even points for its two divisions?
A)$0 
B)$(245, 960) 
C)$(68, 960) 
D)$30, 230

Quizplus · Accepted Answer

If the company operates at the break-even points for its two divisions, it will not cover its common fixed expense of $68, 960.

Criblez Corporation Has Two Divisions: Blue Division and Gold Division