Asked by ayush kumar on Jun 03, 2024
Verified
The Western Division's break-even sales is closest to:
A) $128,788
B) $233,364
C) $177,212
D) $358,929
Break-even Sales
The amount of revenue needed to cover both the variable and fixed costs of a business, resulting in neither profit nor loss.
- Acquire knowledge on the notion of break-even analysis in the realm of business.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
A
Explanation :
Segment CM ratio = Segment contribution margin ÷ Segment sales
= $124,080 ÷ $188,000 = 0.660
Dollar sales for a segment to break even = Traceable fixed expenses ÷ Segment CM ratio
= $85,000 ÷ 0.660 = $128,788
= $124,080 ÷ $188,000 = 0.660
Dollar sales for a segment to break even = Traceable fixed expenses ÷ Segment CM ratio
= $85,000 ÷ 0.660 = $128,788
Learning Objectives
- Acquire knowledge on the notion of break-even analysis in the realm of business.