Gulinson Corporation has two divisions: Division A and Division B. Data from the most recent month appear below: The break-even in sales dollars for Division A is closest to:
A) $134,694
B) $184,531
C) $487,179
D) $267,367

Question

Gulinson Corporation has two divisions: Division A and Division B. Data from the most recent month appear below:  The break-even in sales dollars for Division A is closest to:
A) $134,694 
B) $184,531 
C) $487,179 
D) $267,367

Quizplus · Accepted Answer

Segment CM ratio = Segment contribution margin ÷ Segment sales
= $108,780 ÷ $222,000 = 0.49
Dollar sales for a segment to break even = Segment traceable fixed expenses ÷ Segment CM ratio
= $66,000 ÷ 0.49 = $134,694

Gulinson Corporation Has Two Divisions: Division a and Division B