Prices in the market would Lower the price
Sales $3,400,000 $2,100,000 Contribution margin $1,500,000 $900,000 Divisional segment margin $1,000,000 $300,000 Net operating
kicyunya [14]
Answer: $750,000
Explanation:
Based on the information given, in last year's income statement segmented by division, SegR-1882's total common fixed expenses will be calculated thus:
Note that Net operating income = Total segment margin - Common fxed expenses
Therefore, Common fixed expense = Net operating income - Total segment margin
Common fixed expenses:
= $1,300,000 - $550,000
= $750,000
Therefore, common fixed expenses is $750,000
Note that total segment margin = $1,000,000 + $300,000 = $1,300,000
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