Gardella Corporation has two divisions: Domestic Division and Foreign Division. The following data are for the most recent operating period: Sales Variable expenses Traceable fixed expenses Common fixed expense Domestic Division $210,000 $ 90,300 Foreign Division $270,000 $ 86,400 $121,000 $90,000 $ 37,800 $ 48,600 The common fixed expenses have been allocated to the divisions on the basis of sales. The Foreign Division's break-even sales is closest to: Multiple Choice $177,941 $249,412 $470,663

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Gardella Corporation has two divisions: Domestic Division and Foreign Division. The following data are for the most recent operating period:
Sales
Variable expenses
Traceable fixed expenses
Common fixed expense
Domestic
Division
$210,000
$ 90,300
Foreign
Division
$270,000
$ 86,400
$121,000
$90,000
$ 37,800
$ 48,600
The common fixed expenses have been allocated to the divisions on the basis of sales.
The Foreign Division's break-even sales is closest to:
Multiple Choice
$177,941
$249,412
$470,663
Transcribed Image Text:Gardella Corporation has two divisions: Domestic Division and Foreign Division. The following data are for the most recent operating period: Sales Variable expenses Traceable fixed expenses Common fixed expense Domestic Division $210,000 $ 90,300 Foreign Division $270,000 $ 86,400 $121,000 $90,000 $ 37,800 $ 48,600 The common fixed expenses have been allocated to the divisions on the basis of sales. The Foreign Division's break-even sales is closest to: Multiple Choice $177,941 $249,412 $470,663
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