Denner Company has two divisions, A and B, that reported the following results for October:
If common fixed expenses were $31,000, total fixed expenses must have been:
A) $31,000
B) $62,000
C) $93,000
D) $52,000

Question

Denner Company has two divisions, A and B, that reported the following results for October: 
If common fixed expenses were $31,000, total fixed expenses must have been:
A) $31,000 
B) $62,000 
C) $93,000 
D) $52,000

Quizplus · Accepted Answer

Since the common fixed expenses were $31,000, we need to add the fixed expenses of both divisions to get the total fixed expenses. 
Total fixed expenses = Fixed expenses of Division A + Fixed expenses of Division B + Common fixed expenses 
= ($36,000 + $57,000) + ($54,000 + $45,000) + $31,000 
= $183,000 
Therefore, the total fixed expenses are $183,000.

Denner Company Has Two Divisions, a and B, That Reported