Criblez Corporation has two divisions: Blue Division and Gold Division.The following report is for the most recent operating period: The company's overall break-even sales is closest to:
A)$104, 825
B)$383, 825
C)$279, 000
D)$299, 645

Question

Criblez Corporation has two divisions: Blue Division and Gold Division.The following report is for the most recent operating period:  The company's overall break-even sales is closest to:
A)$104, 825 
B)$383, 825 
C)$279, 000 
D)$299, 645

Quizplus · Accepted Answer

CM ratio = Contribution margin ÷ Sales
= $276, 190 ÷ $431, 000 = 0.641 (rounded)
Total fixed expenses = Total traceable fixed expenses + Common fixed expenses
= $177, 000 + $68, 960 = $245, 960
Dollar sales to break even = Total fixed expenses ÷ CM ratio
= $245, 960 ÷ 0.641 = $383, 825 (using the unrounded CM ratio)

Criblez Corporation Has Two Divisions: Blue Division and Gold Division