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