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Rudik [331]
3 years ago
11

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 $490,000 $125,000 $365,000 Variable expenses 288,800 62,500 226,300 Contribution margin 201,200 62,500 138,700 Traceable fixed expenses 111,650 34,790 76,860 Segment margin 89,550 $ 27,710 $ 61,840 Common fixed expenses 36,910 Net operating income $ 52,640 The break-even in sales dollars for Division Q is closest to:
Business
1 answer:
son4ous [18]3 years ago
4 0

Answer:

Break-even point (dollars)= $202,263.16

Explanation:

Giving the following information:

Division Q:

Sales= $365,000

Total variable costs= 226,300

Fixed costs= 76,860

<u>To calculate the break-even point for Division Q, we need to use the following formula:</u>

<u></u>

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

Break-even point (dollars)= 76,860 / [(365,000 - 226,300) / 365,000]

Break-even point (dollars)= 76,860 / 0.38

Break-even point (dollars)= $202,263.16

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