The Sphinx Division of Shepherd Corporation Generated Net Revenues of $12,000,000

question 91

Multiple Choice

The Sphinx division of Shepherd Corporation generated net revenues of $12,000,000 and variable expenses of $7,700,000.If common corporate fixed costs were $1,000,000 and the segment margin was $1,300,000, what are the division's direct fixed expenses?

• A)$4,300,000
• B)$3,000,000
• C)$300,000
• D)The answer cannot be determined from the information given.

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Definitions:

Organizational Structure

The system that outlines how activities are directed in order to achieve an organization's objectives, including its roles, responsibilities, and communication pathways.

Policy

A course of action adopted and pursued by a government, business, or individual.

Organizational Structure

The hierarchical arrangement of lines of authority, communications, rights, and duties of an organization, determining how roles, power, and responsibilities are assigned and controlled.

Cooperation

A process where individuals or groups work together towards a common goal or objective.