Answer:
$107,700= common fixed expense
Explanation:
Giving the following information:
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.
The common fixed costs that can't be traced are deducted from the total contribution margin (contribution margin from each division) to calculate the net operating income.
Net operating income= Total contribution margin - common fixed expense
10,700= (76,100 + 42,300) - common fixed expense
107,700= common fixed expense
