Nantua Corporation has two divisions, Southern and Northern.The following information was taken from last year's income statement segmented by division: Net operating income last year for Nantua Corporation was $400, 000. In last year's income statement segmented by division, what were Nantua's total common fixed expenses?
A)$450, 000
B)$800, 000
C)$1, 250, 000
D)$1, 300, 000

Question

Nantua Corporation has two divisions, Southern and Northern.The following information was taken from last year's income statement segmented by division:  Net operating income last year for Nantua Corporation was $400, 000. In last year's income statement segmented by division, what were Nantua's total common fixed expenses?
A)$450, 000 
B)$800, 000 
C)$1, 250, 000 
D)$1, 300, 000

Quizplus · Accepted Answer

Net operating income = Total segment margin - Common fixed expenses
$400, 000 = $850, 000 - Common fixed expenses
Common fixed expenses = $850, 000 - $400, 000 = $450, 000

Nantua Corporation Has Two Divisions, Southern and Northern