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