4 Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent...
4
Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below:
| Total Company | Division L | Division Q | |||||||
| Sales | $ | 541,000 | $ | 173,000 | $ | 368,000 | |||
| Variable expenses | 323,720 | 117,640 | 206,080 | ||||||
| Contribution margin | 217,280 | 55,360 | 161,920 | ||||||
| Traceable fixed expenses | 111,910 | 38,710 | 73,200 | ||||||
| Segment margin | 105,370 | $ | 16,650 | $ | 88,720 | ||||
| Common fixed expenses | 64,160 | ||||||||
| Net operating income | $ | 41,210 | |||||||
The break-even in sales dollars for Division Q is closest to: (Round your intermediate calculations to 2 decimal places.)
Homework Answers
Contribution Margin ratio = Contribution margin / Sales
= 161,920/368,000
= 44%
Breakeven point = Traceable fixed cost / Contribution margin ratio
= 73,200 / 44%
= 166,363.64
Comment if you face any issues
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4
Delisa Corporation has two divisions: Division L and Division Q.
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