Gunderman Corporation Has Two Divisions: the Alpha Division and the Charlie

Multiple Choice

Gunderman Corporation has two divisions: the Alpha Division and the Charlie Division. The Alpha Division has sales of $230,000, variable expenses of $131,100, and traceable fixed expenses of $63,300. The Charlie Division has sales of $540,000, variable expenses of $307,800, and traceable fixed expenses of $120,700. The total amount of common fixed expenses not traceable to the individual divisions is $119,200. What is the company's net operating income?

A) $147,100
B) $331,100
C) $27,900
D) $211,900