Asked by ZnonEmpire candy on Apr 26, 2024

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Combe Corporation has two divisions: Alpha and Beta.Data from the most recent month appear below: Combe Corporation has two divisions: Alpha and Beta.Data from the most recent month appear below:   The company's common fixed expenses total $80,800.The break-even in sales dollars for Alpha Division is closest to: A) $491,129 B) $143,478 C) $187,536 D) $260,580 The company's common fixed expenses total $80,800.The break-even in sales dollars for Alpha Division is closest to:

A) $491,129
B) $143,478
C) $187,536
D) $260,580

Common Fixed Expenses

Common fixed expenses are overhead costs shared across multiple segments or products of a business, like administrative salaries or building rent.

Break-Even

The point at which total costs and total revenue are equal, meaning there is no net loss or gain.

Sales Dollars

The total revenue generated from selling goods or services, measured in dollars.

  • Assess the points at which costs and revenues balance, in both unit count and sales dollars.
  • Acquire understanding of the role segment margins and joint fixed expenses play in determining the overall net operating income.
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PK
Pouya KouzehkananiMay 01, 2024
Final Answer :
B
Explanation :
Alpha Division:
Segment contribution margin = Segment sales - Segment variable expenses
= $190,000 - $58,900 = $131,100
Segment CM ratio = Segment contribution margin ÷ Segment sales
= $131,100 ÷ $190,000 = 0.69
Dollar sales for a segment to break even = Segment traceable fixed expenses ÷ Segment CM ratio
= $99,000 ÷ 0.69 = $143,478