Criblez Corporation has two divisions: Blue Division and Gold Division.The following report is for the most recent operating period: The Gold Division's break-even sales is closest to:
A)$276,812
B)$301,391
C)$383,825
D)$201,449

Question

Criblez Corporation has two divisions: Blue Division and Gold Division.The following report is for the most recent operating period:  The Gold Division's break-even sales is closest to:
A)$276,812 
B)$301,391 
C)$383,825 
D)$201,449

Quizplus · Accepted Answer

Segment CM ratio = Segment contribution margin ÷ Segment sales
= $224,250 ÷ $325,000 = 0.690
Dollar sales for a segment to break even = Traceable fixed expenses ÷ Segment CM ratio
= $139,000 ÷ 0.690 = $201,449

Criblez Corporation Has Two Divisions: Blue Division and Gold Division