A company has two divisions, X and Y. The following has been provided related to the operation
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Question:
A company has two divisions, X and Y. The following has been provided related to the operation of those two divisions:
X Y Total
Sales
$300,000 $200,000 $500,000
Variable expenses
$120,000 $140,000 $260,000
Contribution margin
$180,000 $60,000 $240,000
Traceable fixed expenses
$100,000 $80,000 $180,000
Segment margin
$80,000 ($20,000) $60,000
Common fixed expenses $50,000
Net operating income $10,000
What dollar amount of sales must Division Y earn to break even at the segment level? Round to the nearest dollar.
Related Book For
Statistics Unlocking the Power of Data
ISBN: 978-1118583104
1st edition
Authors: Robin H. Lock, Patti Frazer Lock, Kari Lock Morgan, Eric F. Lock, Dennis F. Lock
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