6-312
232. Minick Corporation has two divisions: Grocery Division and Convenience Division. The
following report is for the most recent operating period:
Total Company Grocery Division Convenience Division
Sales $572,000 $222,000 $350,000
Variable expenses 178,940 59,940 119,000
Contribution margin 393,060 162,060 231,000
Traceable fixed expenses 252,000 98,000 154,000
Segment margin 141,060 64,060 77,000
Common fixed expense 91,520 35,520 56,000
Net operating income $49,540 $28,540 $21,000
The common fixed expenses have been allocated to the divisions on the basis of sales.
Required:
a. What is the Grocery Division’s break-even in sales dollars?
b. What is the Convenience Division’s break-even in sales dollars?
c. What is the company’s overall break-even in sales dollars?
d. What would be the company‘s overall net operating income if the company operated at its two
division’s break-even points?
6-314
233. Monce Corporation has two divisions: Home Division and Commercial Division. The
following report is for the most recent operating period:
Total Company Home Division Commercial Division
Sales $700,000 $324,000 $376,000
Variable expenses $303,200 $149,040 $154,160
Traceable fixed expenses $265,000 $106,000 $159,000
Common fixed expense $70,000 $32,400 $37,600
The common fixed expenses have been allocated to the divisions on the basis of sales.
Required:
a. What is the Home Division’s break-even in sales dollars?
b. What is the Commercial Division’s break-even in sales dollars?
c. What is the company’s overall break-even in sales dollars?
6-316
234. Peals Corporation has two divisions: Home Division and Commercial Division. The
following report is for the most recent operating period:
Total Company Home Division Commercial Division
Sales $696,000 $365,000 $331,000
Variable expenses $230,700 $131,400 $99,300
Traceable fixed expenses $296,000 $152,000 $144,000
The company’s common fixed expenses total $125,280.
Required:
a. What is the Home Division’s break-even in sales dollars?
b. What is the Commercial Division’s break-even in sales dollars?
c. What is the company’s overall break-even in sales dollars?
6-318
235. Propst Corporation has two divisions: Garden Division and Farm Division. The following
report is for the most recent operating period:
Total Company Garden Division Farm Division
Sales $390,000 $270,000 $120,000
Variable expenses 95,400 59,400 36,000
Contribution margin 294,600 210,600 84,000
Traceable fixed expenses 223,000 165,000 58,000
Segment margin 71,600 $45,600 $26,000
Common fixed expense 46,800
Net operating income $24,800
Required:
a. What is the Garden Division’s break-even in sales dollars?
b. What is the Farm Division’s break-even in sales dollars?
c. What is the company’s overall break-even in sales dollars?
d. What would be the company’s overall net operating income if the company operated at its two
division’s break-even points?
6-320
236. Roskos Corporation has two divisions: Town Division and Country Division. The following
report is for the most recent operating period:
Town
Division Country
Division
Sales $278,000 $251,000
Variable expenses $150,120 $128,010
Traceable fixed expenses $91,000 $92,000
The company’s common fixed expenses total $52,900.
Required:
a. What is the Town Division’s break-even in sales dollars?
b. What is the Country Division’s break-even in sales dollars?
c. What is the company’s overall break-even in sales dollars?
