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

question 111

Multiple Choice

Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $580,000, variable expenses of $301,600, and traceable fixed expenses of $186,500. The Alpha Division has sales of $510,000, variable expenses of $178,500, and traceable fixed expenses of $222,100. The total amount of common fixed expenses not traceable to the individual divisions is $235,500. What is the company's net operating income?

• A) $374,400
• B) $201,300
• C) $609,900
• D) ($34,200)