Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $235,000, variable expenses of $132,600, and traceable fixed expenses of $63,800. The Alpha Division has sales of $545,000, variable expenses of $309,800, and traceable fixed expenses of $121,500. The total amount of common fixed expenses not traceable to the individual divisions is $120,200. What is the company's net operating income

Operating income $32,100

Explanation:

The operating income for the company is the to be determined by aggregating the sales and cost figures of the two divisions . This is done as follows

                                                                                                 $

Total sales   (235,000 + 545,000)          =                       780,000

Variable expenses(132600+309800)     =                      (442,400)

Traceable fixed expenses(63800+121500)  =                (185300)

Common fixed expenses                                                   (120200 )

Operating income                                                                  32,100

the answer is a.

by: nicholas dooley

answer; organization;