Delisa Corporation has two divisions: Division L and Division Q.Data from the most recent month appear below:
The break-even in sales dollars for Division Q is closest to:
A) $352,635
B) $234,615
C) $403,635
D) $512,742

Question

Delisa Corporation has two divisions: Division L and Division Q.Data from the most recent month appear below:
 The break-even in sales dollars for Division Q is closest to:
A) $352,635 
B) $234,615 
C) $403,635 
D) $512,742

Quizplus · Accepted Answer

Division Q:
Segment CM ratio = Segment contribution margin ÷ Segment sales
= $187,720 ÷ $361,000 = 0.52
Dollar sales for a segment to break even = Segment traceable fixed expenses ÷ Segment CM ratio
= $122,000 ÷ 0.52 = $234,615

Delisa Corporation Has Two Divisions: Division L and Division Q