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?
A) $149,100
B) $57,700
C) $217,400
D) $191,100

Question

Quizplus · Accepted Answer

The common fixed expense not traceable to the individual divisions is calculated by subtracting the corporation's net operating income from the total of the divisional segment margins: $15,700 + $175,400 - $42,000 = $149,100.

Uchimura Corporation Has Two Divisions: the AFE Division and the GBI