Sugiki Corporation has two divisions: the Alpha Division and the Delta Division. The Alpha Division has sales of $820,000, variable expenses of $369,000, and traceable fixed expenses of $347,300. The Delta Division has sales of $460,000, variable expenses of $294,400, and traceable fixed expenses of $134,100. The total amount of common fixed expenses not traceable to the individual divisions is $97,300. What is the company's net operating income

Net operating profit = $37,900

Explanation:

Giving the following information:

The Alpha Division:

Sales = $820,000

Variable expenses = $369,000

Traceable fixed expenses of $347,300

The Delta Division:

Sales = $460,000

Variable expenses = $294,400

Traceable fixed expenses of $134,100.

The total amount of common fixed expenses not traceable to the individual divisions is $97,300.

First, we need to calculate the net profit for each division and then subtract the common fixed expenses:

Alpha = 820,000 - 369,000 - 347,300 = 103,700

Delta = 460,000 - 294,400 - 134,100 = 31,500

Common fixed expense = (97,300)

Net operating profit = $37,900