Miscavage Corporation Has Two Divisions: the Beta Division and the Alpha

question 370

Multiple Choice

Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $285,000, variable expenses of $147,600, and traceable fixed expenses of $68,800. The Alpha Division has sales of $595,000, variable expenses of $329,800, and traceable fixed expenses of $129,500. The total amount of common fixed expenses not traceable to the individual divisions is $130,200. What is the company's net operating income?

• A) $204,300
• B) $402,600
• C) $74,100
• D) $265,200

---

Definitions:

Professional Investors

Individuals or entities that earn a living by managing and investing in various securities and asset classes on behalf of themselves or others.

Institutional Investors

Entities such as pension funds, insurance companies, and mutual funds that invest large sums of money on behalf of individuals.

Precious Metals

Metals of high economic value such as gold, silver, platinum, and palladium, often used in jewelry, industrial applications, and as investment.

Dividend-payout Policy

A company's approach to distributing earnings to its shareholders, either in the form of cash dividends or stock repurchases.