11/15/2020 Quiz-4 (Timed): Attempt review (page 4 of 4)

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Question 16 J Corporation has two divisions. Division A has a contribution margin of $79,300 and Division B has a
Correct contribution margin of $126,200. If total traceable fixed costs are $72,400 and total common fixed costs are
1.00 points out $34,900, what is J Corporation's net operating income?
of 1.00

Select one:
a. $168,000

b. $170,600

c. $133,100

d. $98,200 

Question 17 O'Neill, Incorporated's income statement for the most recent month is given below.
Correct

1.00 points out

If Store B sales increase by $20,000 with no change in traceable fixed expenses, the overall company net
operating income should:

Select one:
a. increase by $2,500

b. increase by $5,000

c. increase by $8,000 

d. increase by $12,000

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11/15/2020 Quiz-4 (Timed): Attempt review (page 4 of 4)

Question 18 Ferrar Corporation has two major business segments-Consumer and Commercial. Data for the segment and for
Incorrect the company for March appear below:
0.00 points out
of 1.00

In addition, common fixed expenses totaled $210,000 and were allocated as follows: $122,000 to the Consumer
business segment and $88,000 to the Commercial business segment.
A properly constructed segmented income statement in a contribution format would show that the segment
margin of the Consumer business segment is:

Select one:
a. $164,000 
Sales................................... $280,000

Variable expenses..............   143,000

Contribution margin.......... $137,000

b. $62,000

c. $394,000

d. $184,000

Question 19 A properly constructed segmented income statement in a contribution format would show that the net operating
Correct income of the company as a whole is:
1.00 points out
of 1.00 Select one:
a. $66,000 

b. -$144,000

c. $423,000

d. $276,000

Question 20 O'Neill, Incorporated's income statement for the most recent month is given below.
Correct

1.00 points out

The marketing department believes that a promotional campaign at Store A costing $5,000 will increase sales by
$15,000. If its plan is adopted, overall company net operating income should:

Select one:
a. decrease by $800 

b. decrease by $5,800

c. increase by $5,800

d. increase by $10,000

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11/15/2020 Quiz-4 (Timed): Attempt review (page 4 of 4)

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