Oliver Wood Company has two divisions: the B Division and the C Division. The co

Question

Oliver Wood Company has two divisions: the B Division and the C Division. The corporation's net operating income is $11,700. The B Division's divisional segment margin is $81,100 and the C Division's divisional segment margin is $46,300. What is the amount of the common fixed expense not traceable to the individual divisions?

$58,000

$127,400

$92,800

$115,700

Oliver Wood Company has two divisions: the B Division and the C Division. The corporation's net operating income is $11,700. The B Division's divisional segment margin is $81,100 and the C Division's divisional segment margin is $46,300. What is the amount of the common fixed expense not traceable to the individual divisions?

Explanation / Answer

Total segment margin(81100+46300) $127400 Less:common fixed expenses(balance)(127400-11700) $115700 Net operating income for the company $11700

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