Answer:
Net operating profit= $37,900
Explanation:
Giving the following information:
The Alpha Division:
Sales= $820,000
Variable expenses= $369,000
Traceable fixed expenses of $347,300
The Delta Division:
Sales= $460,000
Variable expenses= $294,400
Traceable fixed expenses of $134,100.
The total amount of common fixed expenses not traceable to the individual divisions is $97,300.
First, we need to calculate the net profit for each division and then subtract the common fixed expenses:
Alpha= 820,000 - 369,000 - 347,300= 103,700
Delta= 460,000 - 294,400 - 134,100= 31,500
Common fixed expense= (97,300)
Net operating profit= $37,900
