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

question 110

Short Answer

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:

Sources of Power

The origins from which an individual or organization derives the ability to influence others, such as through expert knowledge, authority, or social relationships.

Compliance

The act of conforming to set rules, standards, or laws.

Influence Tactic

Strategies or approaches used by an individual or group to persuade or alter the behavior of others.

Negotiate

The process of discussing to reach an agreement or compromise between parties with differing needs, desires, or perspectives.