Bode Corporation has two divisions: East and West.Data from the most recent month appear below: The company's common fixed expenses total $47,300.If the company operates at exactly the break-even sales of the East Division and West Division,what would be the company's overall net operating income?
A)$0
B)($293,300)
C)$51,470
D)($47,300)

Question

Bode Corporation has two divisions: East and West.Data from the most recent month appear below:  The company's common fixed expenses total $47,300.If the company operates at exactly the break-even sales of the East Division and West Division,what would be the company's overall net operating income?
A)$0 
B)($293,300) 
C)$51,470 
D)($47,300)

Quizplus · Accepted Answer

If a company operates at the break-evens of its segments,the sales will cover variable costs and traceable fixed costs,but not common fixed expenses.

Bode Corporation Has Two Divisions: East and West