Answer:
Net income= -$34,200
Step-by-step explanation:
Giving the following information:
Beta Division:
Sales= $580,000
Variable expenses= $301,600
Traceable fixed expenses of $186,500.
Income= 91,900
Alpha Division:
Sales of $510,000
Variable expenses of $178,500
Traceable fixed expenses of $222,100.
Income= 109,400
The total amount of common fixed expenses not traceable to the individual divisions is $235,500.
We need to deduct from the income of each division the not traceable fixed costs.
Net income= 91,900 + 109,400 - 235,500
Net income= -$34,200