Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Total Sales $ 300,000 $ 200,000 $ 500,000 Variable expenses 120,000 140,000 260,000 Contribution margin 180,000 60,000 240,000 Traceable fixed expenses 100,000 80,000 180,000 Segment margin $ 80,000 $ (20,000) 60,000 Common fixed expenses 50,000 Net operating income $ 10,000 The dollar sales required for the company to break even is closest to:
Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Total Sales $ 300,000 $ 200,000 $ 500,000 Variable expenses 120,000 140,000 260,000 Contribution margin 180,000 60,000 240,000 Traceable fixed expenses 100,000 80,000 180,000 Segment margin $ 80,000 $ (20,000) 60,000 Common fixed expenses 50,000 Net operating income $ 10,000 The dollar sales required for the company to break even is closest to:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume a company with two divisions (A and B) prepared the following segmented income statement:
| A | B | Total | |
|---|---|---|---|
| Sales | $ 300,000 | $ 200,000 | $ 500,000 |
| Variable expenses | 120,000 | 140,000 | 260,000 |
| Contribution margin | 180,000 | 60,000 | 240,000 |
| Traceable fixed expenses | 100,000 | 80,000 | 180,000 |
| Segment margin | $ 80,000 | $ (20,000) | 60,000 |
| Common fixed expenses | 50,000 | ||
| Net operating income | $ 10,000 |
The dollar sales required for the company to break even is closest to:
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