Therrell Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating period: Bulb Division Seed Division Sales $ 282,000 $ 188,000 Variable expenses $ 73,320 $ 39,480 Traceable fixed expenses $ 174,440 $ 84,600 Common fixed expense $ 32,640 $ 21,760 The common fixed expenses have been allocated to the divisions on the basis of sales. Required: a. What is the Bulb Division’s break-even in sales dollars? b. What is the Seed Division’s break-even in sales dollars? c. What is the company’s overall break-even in sales dollars?
Therrell Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating period: Bulb Division Seed Division Sales $ 282,000 $ 188,000 Variable expenses $ 73,320 $ 39,480 Traceable fixed expenses $ 174,440 $ 84,600 Common fixed expense $ 32,640 $ 21,760 The common fixed expenses have been allocated to the divisions on the basis of sales. Required: a. What is the Bulb Division’s break-even in sales dollars? b. What is the Seed Division’s break-even in sales dollars? c. What is the company’s overall break-even in sales dollars?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Therrell Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating period:
| Bulb Division | Seed Division | |||
| Sales | $ | 282,000 | $ | 188,000 |
| Variable expenses | $ | 73,320 | $ | 39,480 |
| Traceable fixed expenses | $ | 174,440 | $ | 84,600 |
| Common fixed expense | $ | 32,640 | $ | 21,760 |
The common fixed expenses have been allocated to the divisions on the basis of sales.
Required:
a. What is the Bulb Division’s break-even in sales dollars?
b. What is the Seed Division’s break-even in sales dollars?
c. What is the company’s overall break-even in sales dollars?
(For all requirements, do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)
a.Bulb Division’s break-even in sales dollars
b.Seed Division’s break-even in sales dollars
c.Company’s overall break-even in sales dollars
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