Asked by ayush kumar on Jun 03, 2024

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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.
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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