1. Danahy Corporation manufactures a single product. The following data pertain to the company's operations over the last two years:

Variable costing net operating income, last year	$	52,000
Variable costing net operating income, this year	$	68,000
Fixed manufacturing overhead costs released from inventory under absorption costing, last year	$	4,000
Fixed manufacturing overhead costs deferred in inventory under absorption costing, this year	$	6,000

What was the absorption costing net operating income this year?

Multiple Choice

$62,000

$74,000

$70,000

$66,000

2. Wyrich Corporation has two divisions: Blue Division and Gold Division. The following report is for the most recent operating period:

	Total Company		Blue Division			Gold Division
Sales	$	522,000	$	391,000		$	131,000
Variable expenses		160,670		89,930			70,740
Contribution margin		361,330		301,070			60,260
Traceable fixed expenses		286,000		239,000			47,000
Segment margin		75,330	$	62,070		$	13,260
Common fixed expenses		73,080
Net operating income	$	2,250

What is the company's overall net operating income if it operates at the break-even points for its two divisions?

$2,250

$0

$(73,080)

$(359,080)