Question: Basic Advanced Sales $3,000,000 $2,000,000 Variable Expenses: Direct Materials $800,000 $600,000 Direct Labor $600,000 $300,000 Sales Commissions $150,000 $200,000 Total Variable Expenses $1,550,000 $1,100,000 Contribution
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| Basic | Advanced |
| Sales | $3,000,000 | $2,000,000 |
| Variable Expenses: |
|
|
| Direct Materials | $800,000 | $600,000 |
| Direct Labor | $600,000 | $300,000 |
| Sales Commissions | $150,000 | $200,000 |
| Total Variable Expenses | $1,550,000 | $1,100,000 |
| Contribution Margin | $1,450,000 | $900,000 |
|
|
|
|
| Traceable Fixed Costs: |
|
|
| Manufacturing Overhead | $488,314 | $781,848 |
| Selling & Administrative | $150,000 | $200,000 |
| Total Traceable Fixed Costs | $638,314 | $981,848 |
| Segment Contribution Margin | $811,686 | -$81,848 |
5. Using your contribution format segmented income statement calculate the break-even point in dollar sales for the Advanced model.
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