Problem:
Gunderman Corporation has two divisions: the Alpha Division and the Charlie Division. The Alpha Division has sales of $300,000, variable expenses of $152,100, and traceable fixed expenses of $70,300. The Charlie Division has sales of $610,000, variable expenses of $335,800, and traceable fixed expenses of $131,900. The total amount of common fixed expenses not traceable to the individual divisions is $133,200.
Required:
Question: What is the company's net operating income?
- $219,900
- $422,100
- $86,700
- $274,200