GREEN COMPANY has two divisions: Del Sur Division and Del Norte Division. The following data are for the most recent operating period: Total Company Del Sur Division Del Norte Division Sales P 418,000 P 193,000 P 225,000 Variable expenses P 130,880 P 79,130 P 51,750 Traceable fixed expenses P 186,000 P 77,000 P 109,000 Common fixed expense P 79,420 P 36,670 P 42,750 The bookkeeper allocated common fixed expenses to the divisions on the basis of sales. Required: a. What is the company's overall break-even sales? b. Determine the break-even point for Del Sur Division c. Determine the break-even point for Del Norte Division.
GREEN COMPANY has two divisions: Del Sur Division and Del Norte Division. The following data are for the most recent operating period:
Total Company Del Sur Division Del Norte Division
Sales P 418,000 P 193,000 P 225,000
Variable expenses P 130,880 P 79,130 P 51,750
Traceable fixed expenses P 186,000 P 77,000 P 109,000
Common fixed expense P 79,420 P 36,670 P 42,750
The bookkeeper allocated common fixed expenses to the divisions on the basis of sales.
Required:
a. What is the company's overall break-even sales?
b. Determine the break-even point for Del Sur Division
c. Determine the break-even point for Del Norte Division.
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