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vampirchik [111]
3 years ago
15

Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Total Company Div

ision L Division Q Sales $529,000 $161,000 $368,000 Variable expenses 305,900 99,820 206,080 Contribution margin 223,100 61,180 161,920 Traceable fixed expenses 122,380 33,320 89,060 Segment margin 100,720 $ 27,860 $ 72,860 Common fixed expenses 36,030 Net operating income $ 64,690 The break-even in sales dollars for Division Q is closest to: Multiple Choice $280,790 $223,375 $446,200 $202,409
Business
1 answer:
amid [387]3 years ago
7 0

Answer:

$202,409

Explanation:

Firstly, we will need to calculate Break even in sales dollar for division Q using the formula;

= Division Q fixed cost / contribution margin ratio

Division Q fixed cost = $89,060

But,

Contribution margin ratio = Contribution margin / Sales

Contribution margin ratio = $161,920 / $368,000

Contribution margin ratio = 44%

Therefore, the Break even in sales dollar for Division Q

= $89,060 / 44%

= $202,409

The Break even in sales dollars for Division Q is closest to $202,409

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Letter a is correct. <u>Internal; external.</u>

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Drag each label to the correct location.
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