Nantua Corporation Has Two Divisions, Southern and Northern

question 24

Multiple Choice

Nantua Corporation has two divisions, Southern and Northern.The following information was taken from last year's income statement segmented by division: Net operating income last year for Nantua Corporation was $400, 000. In last year's income statement segmented by division, what were Nantua's total common fixed expenses?

• A)$450, 000
• B)$800, 000
• C)$1, 250, 000
• D)$1, 300, 000

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Definitions:

Invoice Date

The date on which an invoice is issued, marking the beginning of the period in which payment is expected according to the terms of sale.

Profit Margin Ratio

A financial metric used to assess a company’s profitability by comparing net income to revenue.

Gross Profit Ratio

The proportion of money left over from revenues after accounting for the cost of goods sold.

FOB Shipping Point

A term that indicates the buyer is responsible for goods once they leave the seller's premises, including paying shipping costs and bearing the risk of loss in transit.