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Nuetrik [128]
3 years ago
5

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

sion L Division Q Sales $528,000 $142,000 $386,000 Variable expenses 319,460 72,420 247,040 Contribution margin 208,540 69,580 138,960 Traceable fixed expenses 109,920 29,400 80,520 Segment margin 98,620 $ 40,180 $ 58,440 Common fixed expenses 55,370 Net operating income $ 43,250 The break-even in sales dollars for Division Q is closest to:
Business
1 answer:
Irina18 [472]3 years ago
5 0

Answer:

the break even point in sales dollars is $223,667

Explanation:

The computation of the break even point in sales dollars is shown below:

= Fixed cost ÷ contribution margin ratio

= $80,520 ÷ ($138,960 ÷ $386,000)

= $80,520 ÷ 36%

= $223,667

Hence, the break even point in sales dollars is $223,667

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scoundrel [369]

Answer:

$612

Explanation:

To compute the depreciation, first we have to compute the depreciation per hour which is given below:

= (Cost of diesel-powered tractor  - estimated residual value) ÷ (useful operating life)

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= ($180,540) ÷ (59,000 hours)

= $3.06 per hour

Now the depreciation would be

= Operated hours  × depreciation per hour

= 200 units × $3.06

= $612

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