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16 August, 21:29

Younie corporation has two divisions: the south division and the west division. the corporation's net operating income is $26,900. the south division's divisional segment margin is $42,800 and the west division's divisional segment margin is $29,900. what is the amount of the common fixed expense not traceable to the individual divisions?

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  1. 16 August, 23:56
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    Given:

    Company's Net operating Income: $26,900

    South division's divisional segment margin: $42,800

    West division's divisional segment margin: $29,900

    Divisional Segment margin: 72,700

    Less: common fixed expenses: x

    Company's Net Operating Income 26,900

    Work back is needed:

    26,900 + x = 72,700

    x = 72,700 - 26,900

    x = 45,800

    The common fixed expenses not traceable to the individual divisions amounts to $45,800
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