Gardella Corporation has two divisions: Domestic Division and Foreign Division. The following data are for the most recent operating period: Domestic Division Foreign Division Sales $ 210,000 $ 270,000 Variable expenses $ 90,300 $ 86,400 Traceable fixed expenses $ 90,000 $ 121,000 Common fixed expense $ 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:
Gardella Corporation has two divisions: Domestic Division and Foreign Division. The following data are for the most recent operating period: Domestic Division Foreign Division Sales $ 210,000 $ 270,000 Variable expenses $ 90,300 $ 86,400 Traceable fixed expenses $ 90,000 $ 121,000 Common fixed expense $ 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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gardella Corporation has two divisions: Domestic Division and Foreign Division. The following data are for the most recent operating period:
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:
| Domestic Division | Foreign Division | ||||
| Sales | $ | 210,000 | $ | 270,000 | |
| Variable expenses | $ | 90,300 | $ | 86,400 | |
| Traceable fixed expenses | $ | 90,000 | $ | 121,000 | |
| Common fixed expense | $ | 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:
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