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Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $265,000, variable expenses of $141,600, and traceable fixed expenses of $66,800. The Alpha Division has sales of $575,000, variable expenses of $321,800, and traceable fixed expenses of $126,300. The total amount of common fixed expenses not traceable to the individual divisions is $126,200. What is the company's net operating income
Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $265,000, variable expenses of $141,600, and traceable fixed expenses of $66,800. The Alpha Division has sales of $575,000, variable expenses of $321,800, and traceable fixed expenses of $126,300. The total amount of common fixed expenses not traceable to the individual divisions is $126,200. What is the company's net operating income
Final answer:The company's net operating income is calculated by subtracting total variable expenses, total traceable fixed expenses, and common fixed expenses from total sales, resulting in a net operating income of $57,300.Explanation:To calculate the company's net operating income, we need to subtract the total expenses (which include variable, traceable fixed, and common fixed expenses) from the total sales of both divisions.Sales for Beta Division: $265,000Sales for Alpha Division: $575,000Total Sales: $265,000 + $575,000 = $840,000Total Variable Expenses: $141,600 (Beta) + $321,800 (Alpha) = $463,400Total Traceable Fixed Expenses: $66,800 (Beta) + $126,300 (Alpha) = $193,100Common Fixed Expenses: $126,200Net Operating Income: $840,000 (Total Sales) - $463,400 (Total Variable Expenses) - $193,100 (Total Traceable Fixed Expenses) - $126,200 (Common Fixed Expenses) = $57,300The company's net operating income is $57,300....