Normandy Company Has the Following Information Pertaining to Its Two

question 98

Multiple Choice

Normandy Company has the following information pertaining to its two divisions for 2018: $$\begin{array} { l r r } & \text { Division } \mathrm { X } & \text { Division } Y \\\text { Variable selling and admin. expenses } & \$ 70,000 & \$ 90,000 \\\text { Direct fixed manufacturing expenses } & 35,000 & 100,000 \\\text { Sales } & 200,000 & 400,000 \\\text { Direct fixed selling and admin. expenses } & 30,000 & 70,000 \\\text { Variable manufacturing expenses } & 40,000 & 100,000\end{array}$$ Common expenses are $24,000 for 2018. What is the operating income for Normandy Company?

• A)$65,000
• B)$325,000
• C)$41,000
• D)$300,000

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Definitions:

Past Month

Refers to the period of the four weeks directly preceding the current date, often used in surveys and studies to specify a timeframe for data collection.

Cocktail Party Effect

The ability of the brain to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli, as when a person can focus on a single conversation in a noisy room.

Inattentional Blindness

A psychological lack of attention that is not associated with any vision defects or deficits, where individuals fail to perceive an unexpected stimulus in plain sight.

Change Blindness

The phenomenon where observers fail to notice significant changes in their visual environment.