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
