Walsh Corporation has two major business segments-East and West. In December, the
East business segment had sales revenues of $690,000, variable expenses of $352,000,
and traceable fixed expenses of $104,000. During the same month, the West business
segment had sales revenues of $140,000, variable expenses of $56,000, and traceable fixed
expenses of $24,000. The common fixed expenses totaled $162,000 and were allocated as
follows: $89,000 to the East business segment and $73,000 to the West business
segment.
A properly constructed segmented income statement in a contribution format would show
that the net operating income of the company as a whole is:
Select one:
a. $132,000
b. $422,000
c. $(30,000)
d. $294,000