Bertie Corporation has two divisions: Retail Division and Wholesale Division. The following data are for the most recent operatingperiod:TotalCompanyRetailDivisionSales$ 608,000 $375,000Variable expenses$ 185,530$90,000Traceable fixed expenses$ 303,000$ 217,000The common fixed expenses of the company are $103,360,The company's overall break-even sales is closest to:WholesaleDivision$ 233,000$ 95,530$ 86,000

Lets understand the basics. Break even point is a point at which no profit no loss condition arise.…

Answered: Bertie Corporation has two divisions:…

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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Giardin Outdoors is a recreational goods retailer with two divisions: Online and Stores. The two divisions both use the services of the corporate Finance and Accounting (F and A) Department. Annual costs of the F and A Department total $5.215 million a year. Managers in the two operating divisions are measured based on division operating profits. The following selected data are available for the two operating divisions: Online Stores Revenues ($000) Fixed Variable Total $ 74,700 40,500 Required: Determine the cost allocation if $3.815 million of the F and A costs are fixed and allocated on the basis of revenues, and the remaining costs, which are variable, are allocated on the basis of transactions. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Transactions_ (000) 1,216.5 358.5 Online Stores
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Glardin Outdoors is a recreational goods retailer with two divisions: Online and Stores. The two divisions both use the services of the corporate Finance and Accounting (F and A) Department. Annual costs of the F and A Department total $5.215 million a year. Managers in the two operating divisions are measured based on division operating profits. The following selected data are available for the two operating divisions: Online Stores Revenues (5000) $ 74,700 40,500 Transactions (000) 1,216.5 358.5 Required: a. What is the F and A cost that is charged to each division if divisional revenues are used as the allocation basis? b. What is the F and A cost that is charged to each division if the the number of transactions is used as the allocation basis? Complete this question by entering your answers in the tabs below. Required A Required B What is the F and A cost that is charged to each division if divisional revenues are used as the allocation basis? Note: Do not round intermediate…
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