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XYZ has two divisions: South and West. Overall net operating income is $26,900. South Division's segment margin is $42,800 and West Division's segment margin is $29,900. What is the amount of the common fixed expense not traceable to the individual divisions

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Zviko

Answer:

$45,800

Explanation:

Common fixed expense = South Division's segment margin + West Division's segment margin  - Overall net operating income

                                        = $42,800 + $29,900 - $26,900 = $45,800

                                        = $45,800

The amount of the common fixed expense not traceable to the individual divisions is $45,800.

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