Merrimack Valley Company segments its business into two divisions-Food and Beverage. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company Food $ 800,000 $ 600,000 560,000 480,000 240,000 120,000 144,000 72,000 96,000 $ 48,000 63,000 $ 33,000 Beverage $ 200,000 80,000 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 120,000 72,000 $ 48,000 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.)
Merrimack Valley Company segments its business into two divisions-Food and Beverage. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company Food $ 800,000 $ 600,000 560,000 480,000 240,000 120,000 144,000 72,000 96,000 $ 48,000 63,000 $ 33,000 Beverage $ 200,000 80,000 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 120,000 72,000 $ 48,000 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
hr.4
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:
Sales
Variable expenses
Contribution margin
Traceable fixed expenses
Segment margin
Common fixed expenses
Net operating income.
Total
Company
$ 800,000
560,000
240,000
144,000
96,000
63,000
$ 33,000
Food
$ 600,000
480,000
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
120,000
72,000
$ 48,000
Beverage
$ 200,000
80,000
120,000
72,000
$ 48,000
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.)
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