When using data from a segmented income statement, the dollar sales for a segment to break even is equal to:

A) Traceable fixed expenses ÷ Segment CM ratio
B) Common fixed expenses ÷ Segment CM ratio
C) (Traceable fixed expenses + Common fixed expenses) ÷ Segment CM ratio
D) Non-traceable fixed expenses ÷ Segment CM ratio

CM Ratio

Stands for Contribution Margin Ratio; it is a financial metric that measures the proportion of revenue that exceeds variable costs and contributes to covering fixed costs and generating profit.

Segmented Income Statement

An income statement that presents revenues, expenses, and profits for different segments of a business, offering detailed financial analysis.

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific business segment or product line.