Bode Corporation has two divisions: East and West.Data from the most recent month appear below: The company's common fixed expenses total $47, 300.If the company operates at exactly the break-even sales of the East Division and West Division, what would be the company's overall net operating income?
A)$0
B)($293, 300)
C)$51, 470
D)($47, 300)

Question

Bode Corporation has two divisions: East and West.Data from the most recent month appear below:  The company's common fixed expenses total $47, 300.If the company operates at exactly the break-even sales of the East Division and West Division, what would be the company's overall net operating income?
A)$0 
B)($293, 300) 
C)$51, 470 
D)($47, 300)

Quizplus · Accepted Answer

If a company operates at the break-evens of its segments, the sales will cover variable costs and traceable fixed costs, but not common fixed expenses.

Bode Corporation Has Two Divisions: East and West