Carrejo Corporation has two divisions: Division M and Division N. Data from the most recent month appear below: 7. Total Company $404,000 152,130 251,870 192,000 59,870 52,520 $ 7,350 Division M Division N $223,000 86,970 136,030 105,000 31,030 28,990 $ 2,040 Sales Variable expenses. Contribution margin. Traceable fixed expenses Segment margin... Common fixed expenses. $181,000 65,160 115,840 87,000 28,840 23,530 $ 5.310 Net operating income.. Management has allocated common fixed expenses to the division based on their sales. The break-even in sales dollars for Division N is closest to: A. $392,211 B. $258,230 C. $172,131 D. $219,656

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Carrejo Corporation has two divisions: Division M and Division N. Data from the most
recent month appear below:
7.
Total
Company Division M
$404,000
152,130
251,870
192,000
59,870
52,520
$ 7,350
Division N
$181,000
65,160
115,840
87,000
28,840
23,530
$ 5,310
$223,000
86,970
136,030
105,000
31,030
Sales.
Variable expenses
Contribution margin.
Traceable fixed expenses
Segment margin...
Common fixed expenses.
28,990
$ 2,040
Net operating income..
Management has allocated common fixed expenses to the division based on their sales.
The break-even in sales dollars for Division N is closest to:
A. $392,211
B. $258,230
C. $172,131
D. $219,656
Transcribed Image Text:Carrejo Corporation has two divisions: Division M and Division N. Data from the most recent month appear below: 7. Total Company Division M $404,000 152,130 251,870 192,000 59,870 52,520 $ 7,350 Division N $181,000 65,160 115,840 87,000 28,840 23,530 $ 5,310 $223,000 86,970 136,030 105,000 31,030 Sales. Variable expenses Contribution margin. Traceable fixed expenses Segment margin... Common fixed expenses. 28,990 $ 2,040 Net operating income.. Management has allocated common fixed expenses to the division based on their sales. The break-even in sales dollars for Division N is closest to: A. $392,211 B. $258,230 C. $172,131 D. $219,656
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