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31 October, 10:14

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

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Answers (2)
  1. 31 October, 10:16
    0
    Options:

    A. $233,700

    B. $ (126,300)

    C. $126,300

    D. $18,900

    Answer:

    Option D is correct.

    $18,900

    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
  2. 31 October, 10:36
    0
    Net Operating income = $18,900

    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
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Home » Business » 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.
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