The Delta division of Georgia Corporation generated net revenues of $6,000,000 and variable expenses of $3,500,000 during the year.If direct fixed costs were $1,000,000 and the segment margin was $1,500,000, what are the common corporate fixed costs?

Question

Quizplus · Accepted Answer

The common corporate fixed costs are not directly calculable from the segment margin, net revenues, variable expenses, and direct fixed costs of one division alone. These costs are shared across the entire corporation and would require additional information about the corporation's total costs and how they are allocated.

The Delta Division of Georgia Corporation Generated Net Revenues of $6,000,000