Fernstrom Corporation has two divisions: East and West. Data from the most recent month appear below. Sales Variable expenses Traceable fixed expenses East $330,000 $132.000 $140,000 $144,000 $ 76,320 $ 43,080 The company’s common fixed expenses total $52100, the company operates at exactly the break-even sales of the East Division and West Division, what would be the company’s overall net operating income?
Darshita Changed status to publish August 7, 2020
Answer:
At the break even point organisation is able to recover all its variable cost and as well as the tracable fixed cost
So ,net operating loss will equal to its common fixed expenses
=common fixed expenses
=52140
So ,net operating loss = Loss of 52140
Darshita Changed status to publish August 7, 2020
