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Arlecino [84]
2 years ago
6

Carrejo Corporation has two divisions: Division M and Division N. Data from the most recent month appear below:

Business
1 answer:
ivann1987 [24]2 years ago
4 0

Answer:

Break-even point (dollars)=  $219,656

Explanation:

Giving the following information:

Division N

Sales= $223,000

Variable expenses= 86,970

Contribution margin= 136,030

Traceable fixed expenses= 105,000

Segment margin= 31,030

Common fixed expenses= 28,990

To calculate the break-even point in dollars for Division N, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

contribution margin ratio= (sales - variable costs) / sales

Break-even point (dollars)= (105,000 + 28,990) / (136,030/223,000)

Break-even point (dollars)=  $219,656

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