Problem:
Base Manufacturing has two divisions: the Morgan Division and the Paige Division. The Morgan Division has sales of $230,000, variable expenses of $131,100, and traceable fixed expenses of $63,300. The Paige Division has sales of $540,000, variable expenses of $307,800, and traceable fixed expenses of $120,700. The total amount of common fixed expenses not traceable to the individual divisions is $119,200.
Required:
Question: What is the company's net operating income?
Select one:
a. $147,100
b. $331,100
c. $27,900
d. $211,900
Note: Please show the work not just the answer.