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