Question

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	$	231,000	$	154,000
Variable expenses	$	60,060	$	32,340
Traceable fixed expenses	$	158,000	$	63,140
Common fixed expense	$	28,200	$	18,800

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?

(For all requirements, do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

Answer 1