Question

Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Products Division's divisional segment margin is $42,800 and the Export Products Division's divisional segment margin is $95,200. The total amount of common fixed expenses not traceable to the individual divisions is $109,200. What is the company's net operating income (loss)?a.$247,200 b.$28,800 c.($138,000) d.$138,000

Answer 1

By adding both divisions segment margins we derive Dukelow corporation Margin

= $42,800 + $95,200 = $138,000

By deducting the common fixed expense of $109,200 we get the business net operating income

= $28,800 (B)