Gore Corporation Has Two Divisions: the Business Products Division and the Export

question 5

Multiple Choice

Gore Corporation has two divisions: the Business Products Division and the Export Products Division.The Business Products Division's divisional segment margin is $55,700 and the Export Products Division's divisional segment margin is $70,600.The total amount of common fixed expenses not traceable to the individual divisions is $107,400.What is the company's net operating income?

• A)$233,700
• B)$(126,300)
• C)$126,300
• D)$18,900

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Definitions:

Revenue

The total amount of money generated by a company from its business activities, such as sales of goods or services, before any expenses are deducted.

Salaries Payable

A liability account that records the amounts of wages earned by employees that have not yet been paid to them.

Salaries Expense

An accounting item that represents the total amount paid to employees in the form of salaries over a specific period of time.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.