Wyrich Corporation has two divisions: Blue Division and Gold Division. The following report is for the most recent operating period:

-What is the company's overall net operating income if it operates at the break-even points for its two divisions?
A) $2,250
B) $0
C) $(73,080)
D) $(359,080)

Question

Wyrich Corporation has two divisions: Blue Division and Gold Division. The following report is for the most recent operating period:
 
-What is the company's overall net operating income if it operates at the break-even points for its two divisions?
A) $2,250 
B) $0 
C) $(73,080) 
D) $(359,080)

Quizplus · Accepted Answer

If the company operates at the break-even points for its two divisions, it will not cover its common fixed expense of $73,080.

Wyrich Corporation Has Two Divisions: Blue Division and Gold Division