PART B (10 pts.): Therrell Corporation has two divisions: Bulb Division and Seed

Question

PART B (10 pts.): Therrell Corporation has two divisions: Bulb Division and Seed Division. The following is their segmented income statement for the most recent operating period: Total Company Division Bulb Seed Division $ 487,000 304,000 183,000 Sales Variable expenses Contribution margirn Traceable fixed expenses Segment margin Common fixed expenses Net operating income 117,470 369.530 255,000 114,530 62,960 77.920 S 36,610 79,040 38,430 224.960 162,000 144,570 93,000 51,570 Required: (You must show your work.) What is the company's overall break-even in sales dollars (round CM% to two decimal places, for example 72.31%, and sales to nearest dollar)?

Explanation / Answer

First Calculate Margin ratio = 369530/487000 = 75.88%

Now,Breakeven In sales = Fixed Costs/Margin Ratio

77920/0.7588

= $102690

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