Assume a company with two divisions (A and B) prepared the following segmented income statement:ABTraceable fixed expensesSalesVariable expensesContribution marginSegment marginCommon fixed expensesNet operating incomeThe dollar sales required for the company to break even is closest to:$ 300,000 $ 209,500Total$ 509,500120,000180,000140,000260,00069,500249,500100,00080,000180,000$ 80,000 $ (10,500)69,50048,000$ 21,500

Break even point:— It is the point of production where total cost is equal to total revenue. At this…

Assume a company with two divisions (A and B) prepared the following segmented income statement: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income A B $ 300,000 $ 209,500 120,000 180,000 Total $ 509,500 140,000 260,000 69,500 249,500 100,000 80,000 180,000 $ 80,000 $ (10,500) 69,500 48,000 $ 21,500 The dollar sales required for the company to break even is closest to:

Assume a company with two divisions (A and B) prepared the following segmented income statement: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income A B $ 300,000 $ 209,500 120,000 180,000 Total $ 509,500 140,000 260,000 69,500 249,500 100,000 80,000 180,000 $ 80,000 $ (10,500) 69,500 48,000 $ 21,500 The dollar sales required for the company to break even is closest to:

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 16E

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