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lukranit [14]
3 years ago
12

Younie Corporation has two divisions: the South Division and the West Division. The corporation's net operating income is $92,30

0. The South Division's divisional segment margin is $46,300 and the West Division's divisional segment margin is $171,700.
A) What is the amount of the common fixed expense not traceable to the individual divisions?
Business
2 answers:
Nikolay [14]3 years ago
4 0

Answer: she

Explanation: 733

Karolina [17]3 years ago
3 0

Answer:

$125,700

Explanation:

Net operating income is the total revenue or income of a business Organisation minus the the total amount spent in generating the income.

The total net operating income of the two divisions has been described as $92,300

The net operating margin of the Southern Division is $46,300

The net operating margin of the western Division is $171,700

The fixed income not traceable to Individual division is

The traceable Southern Division margin+traceable western Division margin-The corporation's net operating income

$46,300+$171,700-$92,300

=$125,700.

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Part 1

<u>Income Statement at 15,600 units</u>

Sales ($ 180 x 15,600)                                     $2,808,000

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Contribution                                                        $842,400

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Net Income                                                                    $0

Part 2

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Explanation:

Break even (units) = Fixed Cost ÷ Contribution per unit

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<u>Assume the company's fixed costs increase by $ 141.000</u>

Break even (units) = Fixed Cost ÷ Contribution per unit

                               = ($ 842,400 + $ 141.000) ÷ ($ 180 - $126)

                               = 18,212 units

Break even Revenue = 18,212 x  $ 180 =  $3,278,000

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