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28 January, 06:22

Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Total CompanyDivision L Division Q Sales$491,000$148,000 $343,000 Variable expenses 263,660 78,440 185,220 Contribution margin 227,340 69,560 157,780 Traceable fixed expenses 129,450 31,850 97,600 Segment margin 97,890$37,710 $60,180 Common fixed expenses 39,550 Net operating income$58,340 The break-even in sales dollars for Division Q is closest to: Multiple Choice a.$298,450 b.$212,174 c.$253,981 d.$454,680

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  1. 28 January, 07:21
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    b. $212,174

    Explanation:

    Division Q's contribution margin = $157,780

    Division Q's sales = $343,000

    Division Q's contribution margin = $157,780 : $343,000 = 0.46

    Division Q's traceable fixed expenses = 97,600

    Division Q's break-even in sales dollars = 97,600 : 0.46 = $212,174

    Therefore, the break-even in sales dollars for Division Q is closest to $212,174.
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