Gunderman Corporation has two divisions: the Alpha Division and the Charlie Division. The Alpha Division has sales of $325,000, variable expenses of $159,600, and traceable fixed expenses of $72,800. The Charlie Division has sales of $635,000, variable expenses of $345,800, and traceable fixed expenses of $135,900. The total amount of common fixed expenses not traceable to the individual divisions is $138,200. What is the company's net operating income? a. $245,900 b. $454,600 c. $107,700 d. $289,200

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 7E: Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments,...
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What is the company's net operating income on these general accounting question?

Gunderman Corporation has two divisions: the Alpha Division and the Charlie
Division. The Alpha Division has sales of $325,000, variable expenses of $159,600,
and traceable fixed expenses of $72,800. The Charlie Division has sales of
$635,000, variable expenses of $345,800, and traceable fixed expenses of
$135,900. The total amount of common fixed expenses not traceable to the
individual divisions is $138,200. What is the company's net operating income?
a. $245,900
b. $454,600
c. $107,700
d. $289,200
Transcribed Image Text:Gunderman Corporation has two divisions: the Alpha Division and the Charlie Division. The Alpha Division has sales of $325,000, variable expenses of $159,600, and traceable fixed expenses of $72,800. The Charlie Division has sales of $635,000, variable expenses of $345,800, and traceable fixed expenses of $135,900. The total amount of common fixed expenses not traceable to the individual divisions is $138,200. What is the company's net operating income? a. $245,900 b. $454,600 c. $107,700 d. $289,200
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