Question
Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period: Total Company Southern Division Northern
Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period:
| Total Company | Southern Division | Northern Division | |||||||
| Sales | $ | 418,000 | $ | 193,000 | $ | 225,000 | |||
| Variable expenses | $ | 130,880 | $ | 79,130 | $ | 51,750 | |||
| Traceable fixed expenses | $ | 186,000 | $ | 77,000 | $ | 109,000 | |||
| Common fixed expense | $ | 79,420 | $ | 36,670 | $ | 42,750 | |||
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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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
3rd Edition
9780078025525, 9780077517359, 77517350, 978-0077398194
