Therrell Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating period:
Bulb Division | Seed Division | |||
Sales | $ | 313,500 | $ | 209,000 |
Variable expenses | $ | 81,510 | $ | 43,890 |
Traceable fixed expenses | $ | 132,940 | $ | 94,050 |
Common fixed expense | $ | 29,880 | $ | 19,920 |
The common fixed expenses have been allocated to the divisions on the basis of sales.
Required:
a. What is the Bulb Division’s break-even in sales dollars?
b. What is the Seed Division’s break-even in sales dollars?
c. What is the company’s overall break-even in sales dollars?
Answer is given below
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