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## 1. calculate break even in sales dollars for the total company Division I and Division 2 2. refer to the original information if sales in

1. calculate break even in sales dollars for the total company Division I and Division 2

The Cashmere Company's segmented income statement is given below: Sales Variable Expenses Contribution Margin Traceable Fixed Exp. Segment Margin Common Fixed Expenses Net Income Total 500,000 345.000 155,000 95.000 60,000 25.000 35,000 Division 1 300,000 225.000 75,000 55.000 20,000 Division 2 200,000 120.000 80,000 40.000 40,000 2. refer to the original information if sales in division to increase by $30,000 and traceable and fixed cost increase by 7000 by how much will overall company net income increase decrease?

3. refer to the original information assume that in may sales in division one are expected to remain at $300,000 the sales in division two are expected to decline $150,000 what is the new weighted average CM ratio?

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