Pevy 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	$332,000	$200,000	$132,000
Variable expenses	$92,400	$66,000	$26,400
Traceable fixed expenses	$170,000	$101,000	$69,000
Common fixed expense	$36,520	$22,000	$14,520

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?

$0

($36,520)

($206,520)

$33,080

Kosco Corporation produces a single product. The company's absorption costing income statement for March follows:

Kosco Corporation Income Statement For the Month Ended March 31
Sales (2,400 units)		$48,000
Cost of goods sold		24,000
Gross margin		24,000
Selling and administrative expenses:
Fixed	$7,200
Variable	9,600	16,800
Net operating income		$7,200

During March, the company's variable production costs were $8 per unit and its fixed manufacturing overhead totaled $5,000. The contribution margin per unit during March was:

$12 per unit

$3 per unit

$10 per unit

$8 per unit