Carlton Corporation has two divisions: Delta and Echo.Data from the most recent month appear below: The company's common fixed expenses total $44,110.The break-even in sales dollars for Echo Division is closest to:

A) $146,756
B) $336,719
C) $214,902
D) $107,317

Question

Carlton Corporation has two divisions: Delta and Echo.Data from the most recent month appear below:

The company's common fixed expenses total $44,110.The break-even in sales dollars for Echo Division is closest to:

A) $146,756
B) $336,719
C) $214,902
D) $107,317

Zachary Bransky · Accepted Answer

Final Answer : D, Explanation :  Echo Division:Segment contribution margin = Segment sales - Segment variable expenses= $147,000 - $86,730 = $60,270Segment CM ratio = Segment contribution margin ÷ Segment sales= $60,270 ÷ $147,000 = 0.41Dollar sales for a segment to break even = Segment traceable fixed expenses ÷ Segment CM ratio= $44,000 ÷ 0.41 = $107,317Reference: CHO7-Ref1Caruso Inc., which produces a single product, has provided the following data for its most recent month of operations:   There were no beginning or ending inventories.

Carlton Corporation has two divisions: Delta and Echo.Data from the most recent month appear below: The company's common fixed expenses total $44,110.The break-even in sales dollars for Echo Division is closest to:

A) $146,756
B) $336,719
C) $214,902
D) $107,317

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Carlton Corporation has two divisions: Delta and Echo.Data from the most recent month appear below: The company's common fixed expenses total $44,110.The break-even in sales dollars for Echo Division is closest to:A) $146,756B) $336,719C) $214,902D) $107,317

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Learning Objectives

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Related questions

Carlton Corporation has two divisions: Delta and Echo.Data from the most recent month appear below: The company's common fixed expenses total $44,110.The break-even in sales dollars for Echo Division is closest to:

A) $146,756
B) $336,719
C) $214,902
D) $107,317