Sugiki Corporation Has Two Divisions: the Alpha Division and the Delta

question 167

Multiple Choice

Sugiki Corporation has two divisions: the Alpha Division and the Delta Division.The Alpha Division has sales of $820,000,variable expenses of $369,000,and traceable fixed expenses of $347,300.The Delta Division has sales of $460,000,variable expenses of $294,400,and traceable fixed expenses of $134,100.The total amount of common fixed expenses not traceable to the individual divisions is $97,300.What is the company's net operating income?

• A)$135,200
• B)$37,900
• C)$616,600
• D)$519,300

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