Merrimack Valley Company segments its business into two divisions-Food and Beverage. The company prepared the contribution format segmented income statement as shown: Total Company Food Sales $1,156,250 $925,000 Beverage $231,250 Variable expenses 786,250 740,000 Contribution margin 370,000 185,000 46,250 185,000 Traceable fixed expenses 156,000 78,000 78,000 Segment margin 214,000 $107,000 $107,000 Common fixed expenses 68,000 Net operating income $ 146,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the Food division. 3. Compute the break-even point in dollar sales for the Beverage division. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.) 1. Dollar sales for company to break-even 2. Dollar sales for Food division to break-even 3. Dollar sales for Beverage division to break-even
Merrimack Valley Company segments its business into two divisions-Food and Beverage. The company prepared the contribution format segmented income statement as shown: Total Company Food Sales $1,156,250 $925,000 Beverage $231,250 Variable expenses 786,250 740,000 Contribution margin 370,000 185,000 46,250 185,000 Traceable fixed expenses 156,000 78,000 78,000 Segment margin 214,000 $107,000 $107,000 Common fixed expenses 68,000 Net operating income $ 146,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the Food division. 3. Compute the break-even point in dollar sales for the Beverage division. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.) 1. Dollar sales for company to break-even 2. Dollar sales for Food division to break-even 3. Dollar sales for Beverage division to break-even
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Merrimack Valley Company segments its business into two divisions-Food and Beverage. The company prepared the contribution
format segmented income statement as shown:
Total
Company
Food
Sales
$1,156,250
$925,000
Beverage
$231,250
Variable expenses
786,250
740,000
Contribution margin
370,000
185,000
46,250
185,000
Traceable fixed expenses
156,000
78,000
78,000
Segment margin
214,000
$107,000
$107,000
Common fixed expenses
68,000
Net operating income
$ 146,000
Required:
1. Compute the companywide break-even point in dollar sales.
2. Compute the break-even point in dollar sales for the Food division.
3. Compute the break-even point in dollar sales for the Beverage division.
(For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.)
1. Dollar sales for company to break-even
2. Dollar sales for Food division to break-even
3. Dollar sales for Beverage division to break-even
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