Answer:
Net income= $98,200
Explanation:
Giving the following information:
Division A:
The contribution margin of $79,300
Division B:
Contribution margin of $126,200.
The total traceable fixed costs are $72,400 and total common fixed costs are $34,900.
To calculate the net operating income, we need to deduct from the combined contribution margin the fixed costs.
Net income= (79,300 + 126,200) - 72,400 - 34,900
Net income= $98,200
The corporation's net operating income will be $98,200, when division A Â contribution margin of $79,300 and Division B has a contribution margin of $126,200 and total common fixed costs are $34,900.
Given that,
Division, A contribution margin of $79,300
Division, B Contribution margin of $126,200.
The total traceable fixed costs are $72,400,
Total common fixed costs are $34,900.
[tex]\text{Net Income} =\text{Sum of contribution by A and B}-\text{ Total traceable fixed costs}-\text{Total common fixed costs}\\\\\text{Net Income} =(\$79,300 + \$126,200) - \$72,400 - \$34,900.\\\\\text{Net Income} =\$98,200.[/tex]
Hence, the correct option is [D].
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