Question

Miscavage corporation has two divisions: the beta division and the alpha division. the beta division has sales of $580,000, variable expenses of $301,600, and traceable fixed expenses of $186,500. the alpha division has sales of $510,000, variable expenses of $178,500, and traceable fixed expenses of $222,100. the total amount of common fixed expenses not traceable to the individual divisions is $235,500. what is the company's net operating income?

Answer 1

Miscavage corporation has two divisions,

The Net Operating Income:

Sales

Less: Variable Cost

Contribution:

Less: traceable Fixed Expenses:

Less: Fixed Expenses:

Net Operating Income: