Puffin Corporation has two divisions: East and West. Data from the most recent m
ID: 2418761 • Letter: P
Question
Puffin Corporation has two divisions: East and West. Data from the most recent month appears below:
East
West
Sales
$ 100,000
$ 150,000
Variable expenses
$ 25,000
$ 50,000
Traceable fixed expenses
$ 50,000
$ 40,000
The company's common fixed expenses total $15,000. If the company operates at exactly the break-even sales of the East Division and West Division, what would be the company's overall net operating income (loss)?
East
West
Sales
$ 100,000
$ 150,000
Variable expenses
$ 25,000
$ 50,000
Traceable fixed expenses
$ 50,000
$ 40,000
Explanation / Answer
Since at Breakeven sales there in no profit and loss
So Company's overall net operating income (loss) = ( 15,000) loss
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