Colasuonno Corporation has two divisions: the West Division and the East Division.The corporation's net operating income is $88,800.The West Division's divisional segment margin is $39,500 and the East Division's divisional segment margin is $166,900.What is the amount of the common fixed expense not traceable to the individual divisions?
A)$255,700
B)$206,400
C)$117,600
D)$128,300

Question

Quizplus · Accepted Answer

Total segment margin = $39,500 + $166,900 = $206,400
Total net operating income = Total segment margin - Common fixed expenses
$88,800 = $206,400 - Common fixed expenses
Common fixed expenses = $206,400 - $88,800 = $117,600

Colasuonno Corporation Has Two Divisions: the West Division and the East