Quinnett Corporation has two divisions: the Export Products Division and the Business Products Division. The Export Products Division's divisional segment margin is $34,300 and the Business Products Division's divisional segment margin is $86,700. The total amount of common fixed expenses not traceable to the individual divisions is $95,600. What is the company's net operating income?
A)$216,600
B)$121,000
C)$25,400
D)($121,000)

Question

Quizplus · Accepted Answer

The company's net operating income is calculated by adding the segment margins of both divisions and then subtracting the common fixed expenses: $34,300 + $86,700 - $95,600 = $25,400.

Quinnett Corporation Has Two Divisions: the Export Products Division and the Business