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What are the common fixed costs for Uchimura (Younie) Corporation?

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Uchimura Corporation (Younie Corporation) has two divisions:the AFE Division and the GBI Division. The corporations net operating income is $42,000. The AFE Divisions divisional segment margin is $15,700 and the GBI Division's divisional segment margin is $175,400. What is the amount of the common fixed expense not traceable to the individual divisions?

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Solution Summary

The solution shows how to determine the common fixed costs not traceable to the individual divisions from divisional segment margin and net operating income.

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Answer is $149,100.

The corporation's divisional segment margin
= AFE Division's divisional segment margin ...

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