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

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Definitions:

Potential GDP

The maximum possible level of output an economy can produce without triggering inflation, assuming full employment and optimal use of resources.

Fiscal Policy

Government policies on taxation and spending that are used to influence the economy.

Federal Spending

The expenditure of funds by a government to support its programs and policies.

Federal Budget

The government's estimate of revenue and expenditures for a forthcoming fiscal year, outlining how federal funds are allocated among different programs and services.