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Sarah Lightle
on Nov 19, 2024

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Younie Corporation has two divisions: the South Division and the West Division. The corporation's net operating income is $84,300. The South Division's divisional segment margin is $48,200 and the West Division's divisional segment margin is $172,000. What is the amount of the common fixed expense not traceable to the individual divisions?

A) $256,300
B) $220,200
C) $135,900
D) $132,500

Divisional Segment Margin

The profit margin for a specific division or segment of a company, calculated by subtracting direct and allocated expenses from segment revenues.

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding non-operating income and expenses.

Common Fixed Expense

A recurring cost that does not vary with the level of output or sales, such as rent or salaries.

  • Master the calculation and relevance of segment margin in the context of divisional performance evaluation.
  • Evaluate the impact of typical fixed expenditures on net operating revenue.
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UK
Uminder KambojNov 19, 2024
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