Asked by Mahaan Manda on Jul 22, 2024
Verified
What is the company's overall net operating income if it operates at the break-even points for its two divisions?
A) $34,100
B) $0
C) $(69,020)
D) $(260,020)
Net Operating Income
A business's income after deducting operating costs, not including taxes or interest.
Break-even Points
The level of sales at which total revenues equal total costs, resulting in no profit or loss.
- Calculate the total net operating income when expenses and income equalize.
Verified Answer
DM
deliah mooneyJul 24, 2024
Final Answer :
C
Explanation :
If the company operates at the break-even points for its two divisions, it will not cover its common fixed expense of $69,020.
Reference: CHO7-Ref49
Neelon Corporation has two divisions: Southern Division and Northern Division.The following data are for the most recent operating period:
The common fixed expenses have been allocated to the divisions on the basis of sales.
Reference: CHO7-Ref49
Neelon Corporation has two divisions: Southern Division and Northern Division.The following data are for the most recent operating period:
The common fixed expenses have been allocated to the divisions on the basis of sales.
Learning Objectives
- Calculate the total net operating income when expenses and income equalize.
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