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05-11-2019
Business

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Uchimura Corporation has two divisions: the AFE Division and the GBI Division. The corporation's net operating income is $42,000. The AFE Division's divisional segment margin is $15,700 and the GBI Division's divisional segment margin is $175,400. What is the amount of the common fixed expense not traceable to the individual divisions?

Respuesta :

Dryomys Dryomys

05-11-2019

Answer:

$149,100

Explanation:

Given that,

Uchimura Corporation has two divisions: the AFE Division and the GBI Division.

Net operating income = $42,000

Divisional segment margin:

AFE Division = $15,700

GBI Division = $175,400

Common fixed expense not traceable to the individual divisions:

= AFE Division's divisional segment margin + GBI Division's divisional segment margin - Net operating income

= 15,700 + 175,400 - 42,000

= $149,100

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