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?

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