Brummitt Corporation Has Two Divisions: the BAJ Division and the CBB

question 189

Multiple Choice

Brummitt Corporation has two divisions: the BAJ Division and the CBB Division. The corporation's net operating income is $10,700. The BAJ Division's divisional segment margin is $76,100 and the CBB Division's divisional segment margin is $42,300. What is the amount of the common fixed expense not traceable to the individual divisions?

• A)$86,800
• B)$107,700
• C)$53,000
• D)$118,400

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