Data for June for Ozaki Corporation and Its Two Major

question 181

Multiple Choice

Data for June for Ozaki Corporation and its two major business segments, North and South, appear below: In addition, common fixed expenses totaled $145,000 and were allocated as follows: $73,000 to the North business segment and $72,000 to the South business segment.
-A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:

• A)$(56,000)
• B)$89,000
• C)$343,000
• D)$234,000

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Definitions:

Gelled Engine Oil

Refers to engine oil that has thickened into a semi-solid state, often due to low temperatures.

Flywheel Ring Gear

A gear attached around the circumference of the flywheel in an internal combustion engine, engaged by the starter motor to start the engine.

Neutral Safety Switch

A safety switch located in the control circuit of a cranking system designed to prevent engine cranking when an automatic transmission is in gear.

Open Circuit

An electrical circuit that is not energized, that is, no current is flowing. The opposite to a closed circuit.