Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $235,000, variable expenses of $132,600, and traceable fixed expenses of $63,800. The Alpha Division has sales of $545,000, variable expenses of $309,800, and traceable fixed expenses of $121,500. The total amount of common fixed expenses not traceable to the individual divisions is $120,200. What is the company's net operating income

Question

Jaime Duran

Business

15 March, 06:08

Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $235,000, variable expenses of $132,600, and traceable fixed expenses of $63,800. The Alpha Division has sales of $545,000, variable expenses of $309,800, and traceable fixed expenses of $121,500. The total amount of common fixed expenses not traceable to the individual divisions is $120,200. What is the company's net operating income

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Parker Goodman · Answer 1

Operating income $32,100

Explanation:

The operating income for the company is the to be determined by aggregating the sales and cost figures of the two divisions. This is done as follows

$

Total sales (235,000 + 545,000) = 780,000

Variable expenses (132600+309800) = (442,400)

Traceable fixed expenses (63800+121500) = (185300)

Common fixed expenses (120200)

Operating income 32,100