Question

Gore Corporation has two divisions: the Business Products Division and the Export Products Division. The Business Products Division's divisional segment margin is $55,700 and the Export Products Division's divisional segment margin is $70,600. The total amount of common fixed expenses not traceable to the individual divisions is $107,400. What is the company's net operating income

Answer 1

Net Operating income = $18,900

Step-by-step explanation:

The company's net operating income is the sum of the divisions operating margin less the non-traceable fixed cost

Net operating income

= $55,700 + $70,600 - 107,400.

= $18,900

The group -wide operating financial performance would be sum of the two divisions less non-traceable expenditures

Answer 2

Options:

A. $233,700

B. $(126,300)

C. $126,300

D. $18,900

Answer:

Option D is correct.

$18,900

Step-by-step explanation:

You need to deduct non-traceable fixed cost from 55700 + 70600 to calculate Net Operating Income.

Net operating income= 55700+70600-107400

= $18,900