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Eva8 [605]
2 years ago
7

Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Pro

ducts Division's divisional segment margin is $41,300 and the Export Products Division's divisional segment margin is $93,700. The total amount of common fixed expenses not traceable to the individual divisions is $106,800. What is the company's net operating income (loss)?Brewer 8e Rechecks 2018-06-22a) $241,800b) $135,000c) $28,200d) $135,000
Business
1 answer:
8_murik_8 [283]2 years ago
3 0

Answer:

c) $28,200

Explanation:

The computation of the net operating income is as follows

Total segment margin is

= $41,300 + $93,700

= $135,000

And, the common fixed expenses is $106,800

So, the net operating income is

= Total segment margin - common fixed expenses

= $135,000 - $106,800

= $28,200

Hence, the net operating income is $28,200

Therefore the correct option is c.

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                Statement of Cash Flows (Indirect Method)

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Net income                                                                      $8,400,000

Add: Adjustment for operating activities                      -<u>$1,300,000</u>

Net cash flow from Operating Activities (I)                    $7,100,000

Add: Net Cash Flow from Investing Activities (II)         -$1,300,000

Add: Net Cash Flow from Financing Activities (III)        <u>$4,000,000</u>

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Click to learn more about Sales and marketing here:

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