Keefe Corporation Has Two Divisions: Western Division and Eastern Division

question 10

Multiple Choice

Keefe Corporation has two divisions: Western Division and Eastern Division.The following report is for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. What is the company's overall net operating income if it operates at the break-even points for its two divisions?

• A)$17,160
• B)($75,240)
• C)($228,240)
• D)$0

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Definitions:

Functional Structure

Functional Structure refers to an organizational form where the company is divided into departments each handling a specific function, like marketing or finance, concentrating expertise but potentially limiting inter-department communication.

Vertical Structure

An organizational structure where authority flows from the top down, with a clear line of command.

Customer Structure

The composition and organization of a business's clientele, including types of customers and their relationship to the business.

Geographical Structure

An organizational structure that groups employees or departments based on geographic regions or locations.