1

Brummitt Corporation has two divisions: the BAJ Division and the CBB Division. The corporation's net operating income is $12,500. The BAJ Division's divisional segment margin is $85,100 and the CBB Division's divisional segment margin is $49,500. What is the amount of the common fixed expense not traceable to the individual divisions?

$97,600

$122,100

$62,000

$134,600

2Quinnett Corporation has two divisions: the Export Products Division and the Business Products Division. The Export Products Division's divisional segment margin is $44,300 and the Business Products Division's divisional segment margin is $96,700. The total amount of common fixed expenses not traceable to the individual divisions is $111,600. What is the company's net operating income?

$252,600

$141,000

$29,400

($141,000)

3

Sorto Corporation has two divisions: the East Division and the West Division. The corporation's net operating income is $97,100. The East Division's divisional segment margin is $46,600 and the West Division's divisional segment margin is $173,800. What is the amount of the common fixed expense not traceable to the individual divisions?

$270,900

$220,400

$123,300

$143,700

4

DC Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $130,000 annually and one salaried estimator who is paid $70,000 annually. The corporate office has two office administrative assistants who are paid salaries of $74,000 and $49,000 annually. The president's salary is $189,000. How much of these salaries are common fixed expenses?

$189,000

$312,000

$123,000

$428,000

5

Cervetti Corporation has two major business segments-East and West. In July, the East business segment had sales revenues of $380,000, variable expenses of $205,000, and traceable fixed expenses of $45,000. During the same month, the West business segment had sales revenues of $1,050,000, variable expenses of $536,000, and traceable fixed expenses of $201,000. The common fixed expenses totaled $310,000 and were allocated as follows: $155,000 to the East business segment and $155,000 to the West business segment.

The contribution margin of the West business segment is:

$514,000

$(23,000)

$705,000

$130,000