Assume a company with two divisions (A and B) prepared the following segmented income statement:ABTraceable fixed expensesSalesVariable expensesContribution marginSegment marginCommon fixed expensesNet operating incomeThe dollar sales required for the company to break even is closest to:$ 300,000 $ 209,500Total$ 509,500120,000180,000140,000260,00069,500249,500100,00080,000180,000$ 80,000 $ (10,500)69,50048,000$ 21,500

Break even point:— It is the point of production where total cost is equal to total revenue. At this…

Assume a company with two divisions (A and B) prepared the following segmented income statement: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income A B $ 300,000 $ 209,500 120,000 180,000 Total $ 509,500 140,000 260,000 69,500 249,500 100,000 80,000 180,000 $ 80,000 $ (10,500) 69,500 48,000 $ 21,500 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: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income A B $ 300,000 $ 209,500 120,000 180,000 Total $ 509,500 140,000 260,000 69,500 249,500 100,000 80,000 180,000 $ 80,000 $ (10,500) 69,500 48,000 $ 21,500 The dollar sales required for the company to break even is closest to:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company has four divisions. Division A has sales, variable expenses and traceable fixed expenses of 200,000, 103,000, 33,000, respectively. If the company as a whole has common fixed expenses of 50,000. What is division A’s segment Margin?
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