372
287) Zable Corporation has two divisions: Town Division and Country Division. The following
report is for the most recent operating period:
Town
Division
Country
Division
Sales
$
235,000
$
192,000
Variable expenses
$
103,400
$
105,600
Traceable fixed expenses
$
80,000
$
58,000
The company’s common fixed expenses total $68,320.
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?
Company
Town Division
Division
Sales
$
427,000
$
235,000
$
192,000
Variable expenses
209,000
103,400
105,600
Contribution margin
218,000
131,600
86,400
Traceable fixed expenses
138,000
80,000
58,000
Segment margin
$
51,600
$
28,400
Common fixed expenses
Net operating income
$
288) Petteway 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
$
702,000
$
354,000
$
348,000
Variable expenses
$
242,460
$
138,060
$
104,400
Traceable fixed expenses
$
325,000
$
152,000
$
173,000
Common fixed expense
$
77,220
$
38,940
$
38,280
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?
Division
Sales
$
702,000
$
354,000
$
348,000
Variable expenses
242,460
138,060
104,400
Contribution margin
459,540
215,940
243,600
Traceable fixed expenses
325,000
152,000
173,000
Segment margin
134,540
$
63,940
$
70,600
Common fixed expenses
77,220
Net operating income
$
57,320
289) Clouthier 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
$
297,000
$
158,000
$
139,000
Variable expenses
$
117,790
$
66,360
$
51,430
Traceable fixed expenses
$
137,000
$
69,000
$
68,000
The company’s common fixed expenses total $29,700.
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?
Division
Sales
$
297,000
$
158,000
$
139,000
Variable expenses
117,790
66,360
51,430
Contribution margin
179,210
91,640
87,570
Traceable fixed expenses
137,000
69,000
68,000
Segment margin
42,210
$
22,640
$
19,570
Common fixed expenses
29,700
Net operating income
$
12,510
290) Koff Corporation has two divisions: Garden Division and Farm Division. The following
report is for the most recent operating period:
Garden Division
Farm
Division
Sales
$
265,000
$
163,000
$
102,000
Variable expenses
105,390
63,570
41,820
Contribution margin
159,610
99,430
60,180
Traceable fixed expenses
110,000
68,000
42,000
Segment margin
49,610
$
31,430
$
18,180
Common fixed expenses
31,800
Net operating income
$
17,810
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?
291) Kneeland 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
$
427,000
$
321,000
$
106,000
Variable expenses
119,380
70,620
48,760
Contribution margin
307,620
250,380
57,240
Traceable fixed expenses
239,000
194,000
45,000
Segment margin
68,620
56,380
12,240
Common fixed expense
46,970
35,310
11,660
Net operating income
$
21,650
$
21,070
$
580
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?