Question 7 - Brummitt Corporation has two divisions the BAJ...

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Unformatted text preview: Brummitt Corporation has two divisions: the BAJ Division and the CBB Division. The corporation's net operating income is $10,700. The BAJ Division's divisional segment margin is $76,100 and the CBB Division's divisional segment margin is $42,300 What is the amount of the common fixed expense not traceable to the individual divisions? 0 $86,800 0 . $107,700 0 $53,000 0 $118,400 Net operating income = Segment margin - Common fixed expenses $10,700 = ($76,100 + $42,300) - Common fixed expenses $10,700 = $118,400 - Common fixed expenses Common fixed expenses = $118,400 - $10,700 = $107,700 ...
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  • Spring '18
  • Daniel Gibbons
  • Managerial Accounting, Net Income, Generally Accepted Accounting Principles, Financial terminology, Common fixed expenses, BAJ Division, Chapter Six Multiple Choice, Brummitt Corporation

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