Brummitt Corporation has two divisions: the BAJ Division and the CBB Division. The corporation's net operating income is $12,100. The BAJ Division's divisional segment margin is $83,100 and the CBB Division's divisional segment margin is $47,900. What is the amount of the common fixed expense not traceable to the individual divisions? a. $95,200 b. $118,900 c. $60,000 d. $131,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 13E: The condensed income statement for the Consumer Products Division of Tri-State Industries Inc. is as...
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Brummitt Corporation has two divisions: the BAJ Division
and the CBB Division. The corporation's net operating
income is $12,100. The BAJ Division's divisional segment
margin is $83,100 and the CBB Division's divisional
segment margin is $47,900. What is the amount of the
common fixed expense not traceable to the individual
divisions?
a. $95,200
b. $118,900
c. $60,000
d. $131,000
Transcribed Image Text:Brummitt Corporation has two divisions: the BAJ Division and the CBB Division. The corporation's net operating income is $12,100. The BAJ Division's divisional segment margin is $83,100 and the CBB Division's divisional segment margin is $47,900. What is the amount of the common fixed expense not traceable to the individual divisions? a. $95,200 b. $118,900 c. $60,000 d. $131,000
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