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17 April, 16:58

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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  1. 17 April, 17:46
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    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
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