Anspach Corporation has two divisions: the Governmental Products Division and the Consumer Products Division. The Governmental Products Division's divisional segment margin is $11,800 and the Consumer Products Division's divisional segment margin is $155,500. The total amount of common fixed expenses not traceable to the individual divisions is $142,200. What is the company's net operating income?
A) ($167,300)
B) $25,100
C) $309,500
D) $167,300

Question

Quizplus · Accepted Answer

The company's net operating income is calculated by adding the divisional segment margins and then subtracting the common fixed expenses: $11,800 + $155,500 - $142,200 = $25,100.

Anspach Corporation Has Two Divisions: the Governmental Products Division and the Consumer