Question

5 Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Products Division's divisional segment margin is $35,300 and the Export Products Division's divisional segment margin is $87,700. The total amount of common fixed expenses not traceable to the individual divisions is $97,200. What is the company's net operating income (loss)? Multiple Choice $220,200 $123.000 $25,800 ($123,000) Mc Graw Hall Education < Prev 5 of 10 Next >

Answer 1

Answer:

For Question 1:

Net operating income = Total segment margin - common fixed expense

= ($35,300 + $87,700) - $97,200,

=$123,000 - $97,200,

= $25,800.

Net Operating Income = $25,800,

So, Option 3 $25,800 is Correct Answer.

For Question 2:

Given Data:

Contribution Margin = $136,950,

Sales = $415,000,

Tracable Fixed Cost = $74,420.

Contribution Margin ratio = Contribution Margin / Sales

= $136,950/$415,000

= 33.00%

Breakeven point = Traceable fixed cost / Contribution margin ratio

= $74,420 / 33.00%

= $225,515.15.

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