8.Bode Corporation has two divisions. East and West. Data from the most recent monthappearsbelow:EastWestSalesVariable expensesTraceable fixed expenses.$324,000$93,960$156,000$149,000$34,270$90,000The company's common fixed expenses total $47,300. If the company operates at exactlythe break-even sales of the East and West division, what would be the company's overallnet operating income?A. $51,470B. ($293,300)C. ($47,300)D. $0

Answered: Bode 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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8.
Bode Corporation has two divisions. East and West. Data from the most recent month
appears
below:
East
West
Sales
Variable expenses
Traceable fixed expenses.
$324,000
$93,960
$156,000
$149,000
$34,270
$90,000
The company's common fixed expenses total $47,300. If the company operates at exactly
the break-even sales of the East and West division, what would be the company's overall
net operating income?
A. $51,470
B. ($293,300)
C. ($47,300)
D. $0

Expert Solution

Step 1 Introduction

Break-Even Point: The break-even point is the point at which total costs and total revenues are equal, implying that there is no net gain or loss for your small company at that time. In other words, you've achieved the point in your manufacturing process when the expenses of production match the revenues generated by a product sold.

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