Question

Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Products Division's divisional segment margin is $40,300 and the Export Products Division's divisional segment margin is $92,700. The total amount of common fixed expenses not traceable to the individual divisions is $105,200. What is the company's net operating income (loss)?

Answer 1

Answer:

$27,800

Explanation:

Given that

Government Divisional segment margin = $40,300

Export Products Division = $92,700

Common fixed expenses = $105,200

The computation of net operating income is shown below:-

Total segment margin = Government divisional segment margin + Export Products Division

= $40,300 + $92,700

= $133,000

Net operating income = Total segment margin - Common fixed expenses

= $133,000 - $105,200

= $27,800