Criblez Corporation has two divisions: Blue Division and Gold Division.The following report is for the most recent operating period: The Blue Division's break-even sales is closest to:
A)$383, 825
B)$218, 286
C)$77, 551
D)$112, 163

Question

Criblez Corporation has two divisions: Blue Division and Gold Division.The following report is for the most recent operating period:  The Blue Division's break-even sales is closest to:
A)$383, 825 
B)$218, 286 
C)$77, 551 
D)$112, 163

Quizplus · Accepted Answer

Segment CM ratio = Segment contribution margin ÷ Segment sales
= $51, 940 ÷ $106, 000 = 0.490
Dollar sales for a segment to break even = Traceable fixed expenses ÷ Segment CM ratio
= $38, 000 ÷ 0.490 = $77, 551

Criblez Corporation Has Two Divisions: Blue Division and Gold Division