Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Products Division's divisional segment margin is $255,000 and the Export Products Division's divisional segment margin is $59,800. The total amount of common fixed expenses not traceable to the individual divisions is $163,700. What is the company's net operating income?
A) $314,800
B) ($314,800)
C) $151,100
D) $478,500

Question

Quizplus · Accepted Answer

To find the company's net operating income, we need to add up the divisional segment margins and subtract the common fixed expenses. 
Net Operating Income = Governmental Products Division segment margin + Export Products Division segment margin - Total common fixed expenses 
Net Operating Income = $255,000 + $59,800 - $163,700 
Net Operating Income = $151,100 
Therefore, the best choice is C.

Dukelow Corporation Has Two Divisions: the Governmental Products Division and the Export