Tabuk’s Manufacturing Company has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period of 2019: Total Company Garden Division Farm Division Sales revenue $390,000 $270,000 $120,000 Variable expenses 95,400 59,400 36,000 Contribution margin 294,600 210,600 84,000 Traceable fixed expenses 223,000 165,000 58,000 Division profit margin 71,600 $45,600 $26,000 Common fixed expense 46,800 Net operating income $24,800 As a manager at the company your responsibilities are planning and directing the company, you are required to: Determine the break-even in sales dollars for the Garden Division's. Determine the break-even in sales dollars for the Farm Division's. Determine the company's overall break-even in sales dollars? What would be the company's overall net operating income if the company operated at its two division's break-even points?
Tabuk’s Manufacturing Company has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period of 2019: Total Company Garden Division Farm Division Sales revenue $390,000 $270,000 $120,000 Variable expenses 95,400 59,400 36,000 Contribution margin 294,600 210,600 84,000 Traceable fixed expenses 223,000 165,000 58,000 Division profit margin 71,600 $45,600 $26,000 Common fixed expense 46,800 Net operating income $24,800 As a manager at the company your responsibilities are planning and directing the company, you are required to: Determine the break-even in sales dollars for the Garden Division's. Determine the break-even in sales dollars for the Farm Division's. Determine the company's overall break-even in sales dollars? What would be the company's overall net operating income if the company operated at its two division's break-even points?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Tabuk’s Manufacturing Company has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period of 2019:
|
|
Total Company |
Garden Division |
Farm Division |
|
Sales revenue |
$390,000 |
$270,000 |
$120,000 |
|
Variable expenses |
95,400 |
59,400 |
36,000 |
|
Contribution margin |
294,600 |
210,600 |
84,000 |
|
Traceable fixed expenses |
223,000 |
165,000 |
58,000 |
|
Division profit margin |
71,600 |
$45,600 |
$26,000 |
|
Common fixed expense |
46,800 |
|
|
|
Net operating income |
$24,800 |
|
As a manager at the company your responsibilities are planning and directing the company, you are required to:
- Determine the break-even in sales dollars for the Garden Division's.
- Determine the break-even in sales dollars for the Farm Division's.
- Determine the company's overall break-even in sales dollars?
- What would be the company's overall net operating income if the company operated at its two division's break-even points?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education