Question: A company has two divisions: Division One and Division Two. The following report is for the most recent operating period: Division One Division Two Sales

A company has two divisions: Division One and Division Two. The following report is for the most recent operating period:

Division One

Division Two

Sales

$ 354,000

$ 348,000

Variable expenses

$ 138,060

$ 104,400

Traceable fixed expenses

$ 152,000

$ 173,000


The company’s common fixed expenses equal $77,220.

What is the company's net operating income? Write the letter of the correct answer. Show your work to support your answer.

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