Question

Nantor Corporation has two divisions, Southern and Northern. The following information was taken from last year's income statement segmented by division: Total CompanySouthern Northern Sales$5,300,000$3,280,000 $2,020,000 Contribution margin$2,300,000$1,440,000 $860,000 Divisional segment margin$1,240,000$960,000 $280,000 Net operating income last year for Nantor Corporation was $530,000. In last year's income statement segmented by division, what were Nantor's total common fixed expenses

Answer 1

Answer:

$710,000

Explanation:

Calculation for what were Nantor's total common fixed expenses

Using this formula

Total Common fixed expenses=Net operating income - Total segment margin

Let plug in the formula

Total Common fixed expenses = $1,240,000 − $530,000

Total Common fixed expenses=$710,000

Therefore Nantor's total common fixed expenses will be $710,000