Wyrich Corporation has two divisions: Blue Division and Gold Division. The follo
ID: 2533353 • Letter: W
Question
Wyrich Corporation has two divisions: Blue Division and Gold Division. The following report is for the most recent operating period Total Blue Gold Company Division Division $522,000$ 391,000 $131,000 Sales 02:2729Variable expenses 160,670 89,930 70,740 Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income 361,330 301,070 60,260 239,000 75,330 $ 62,070 13,260 286,000 47,000 73,080 2,250 The Gold Division's break-even sales is closest to: Multiple Choice $102,174 $261,043 $142,043 $518,750Explanation / Answer
Answer: $102,174
Gold Division’s break-even sales = Traceable fixed expenses/Contribution margin ratio = $47000/0.46 = $102173.91 = $102174
Contribution margin ratio = Contribution margin/Sales = $60260/$131000 = 0.46
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