Younie Corporation has two divisions: the South Division and the West Division. The corporation's net operating income is $96,100. The South Division's divisional segment margin is $40,400 and the West Division's divisional segment margin is $167,100. What is the amount of the common fixed expense not traceable to the individual divisions

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Business

Isaiah Finley

27 April, 05:01

Younie Corporation has two divisions: the South Division and the West Division. The corporation's net operating income is $96,100. The South Division's divisional segment margin is $40,400 and the West Division's divisional segment margin is $167,100. What is the amount of the common fixed expense not traceable to the individual divisions

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Rachel Holland · Answer 1

Total operating divisional margin = 167100 + 40400

= 207500

Let total common fixed expense be x

207500 - x = 96100 (given)

x = 207500 - 96100

= 111400

common fixed expense not traceable to the individual divisions = 111400