Question

Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Total CompanyDivision L Division Q Sales$491,000$148,000 $343,000 Variable expenses 263,660 78,440 185,220 Contribution margin 227,340 69,560 157,780 Traceable fixed expenses 129,450 31,850 97,600 Segment margin 97,890$37,710 $60,180 Common fixed expenses 39,550 Net operating income$58,340 The break-even in sales dollars for Division Q is closest to: Multiple Choice a.$298,450 b.$212,174 c.$253,981 d.$454,680

Answer 1

b. $212,174

Step-by-step explanation:

Division Q's contribution margin = $157,780

Division Q's sales = $343,000

Division Q's contribution margin = $157,780 ÷ $343,000 = 0.46

Division Q's traceable fixed expenses = 97,600

Division Q's break-even in sales dollars = 97,600 ÷ 0.46 = $212,174

Therefore, the break-even in sales dollars for Division Q is closest to $212,174.