Question
Keefe Corporation has two divisions: Western Division and Eastern Division. The following report is for the most recent operating period: Total Company Western Division Eastern
Keefe Corporation has two divisions: Western Division and Eastern Division. The following report is for the most recent operating period: Total Company Western Division Eastern Division Sales $396,000 $276,000 $120,000 Variable expenses 150,600 124,200 26,400 Contribution margin 245,400 151,800 93,600 Traceable fixed expenses 153,000 94,000 59,000 Segment margin 92,400 57,800 34,600 Common fixed expense 75,240 52,440 22,800 Net operating income $17,160 $5,360 $11,800 The common fixed expenses have been allocated to the divisions on the basis of sales. What is the company's overall net operating income if it operates at the break-even points for its two divisions?
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