contestada

Uchimura Corporation has two divisions: the AFE Division and the GBI Division. The corporation's net operating income is $42,000. The AFE Division's divisional segment margin is $15,700 and the GBI Division's divisional segment margin is $175,400. What is the amount of the common fixed expense not traceable to the individual divisions? a) $149,100
b) $57,700
c) $217,400
d) $191,100

Respuesta :

Parrain

Answer: a) $149,100

Explanation:

The amount of common fixed cost that is not traceable to any of the individual divisions will be the difference between their two segment margins and the corporations net operating income because the fixed costs would have been subtracted from their segment contributions to find the Corporation's net operating income;

= GBI Margin + AFE Margin - Corporation net income

= 175,400 + 15,700 - 42,000

= $149,100