Delisa Corporation has two divisions: Division L and Division Q.

Data from the most recent month appear below:

Total Company Division L Division Q

Sales $ 510,000 $153,000 $357,000

Variable expenses 312,120 87,210 224,910

Contribution margin 197,880 65,790 132,090

Traceable fixed expenses 113,360 35,280 78,080

Segment margin 84,520 $30,510 $54,010

Common fixed expenses 65,040

Net operating income $19,480

The break-even in sales dollars for Division Q is closest to: (Round your intermediate calculations to 2 decimal places.)

a) $291,760 b) $211,027 c) $227,175 d) $395,760

b) $211,027

Explanation:

Break Even Sales Volume in Dollars = Fixed Costs / 1 - (variable Costs / Sales)

Break Even Sales Volume in Dollars = 78080/1 - (224910/357,000)

Break Even Sales Volume in Dollars = 78080/1-0.63

Break Even Sales Volume in Dollars = 78080/0.37

Break Even Sales Volume in Dollars=$211,027.027

Working

Total Company Division L Division Q

Sales $ 510,000 $153,000 $357,000

Variable expenses 312,120 87,210 224,910

Contribution margin 197,880 65,790 132,090

Traceable fixed expenses 113,360 35,280 78,080

Segment margin 84,520 $30,510 $54,010

Common fixed expenses 65,040

Net operating income $19,480