WileyPLUS Chegg Study | Guided Solutio × e what ls The Answer Please Arx × c sec

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WileyPLUS Chegg Study | Guided Solutio × e what ls The Answer Please Arx × c secure https://edugen.wileyplus.com/edugen/student/mainfr.u ni WileyPLUS Kimmel Accounting, 6 INTRODUCTORY ACCOUNTING I/II (ACT 221/222) Home Read, Study & Practice Assignment Gradebook ORION Downloadable eTextbook Assignment>open Assignment TIMER Start Time: 02:00 PM/ Remaining: 67 min. CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Question 1 The sales mix percentages for Vaughn's Boston and Seattle Divisions are 70% and 30%. The contribution margin ratios are: Boston (40%) and Seattle (3096). Fixed costs are 3237500, what is Vaughn's break-even point in dollars? 18-19-20 a Question 1 Question 2 $9810606. $1133125. $8750000. $9250000 Question 4 Question 5 Question Question 7 Question Question 9 Question 10 Question 11 Click if you would like to Show Work for this question: Question13 Question 14 Question 15 Question Attempts: 0 of 1 usedSAVE FOR LATER SUBMIT ANSWER Question 20 Question 25 All Rights Reserved. A Division of lohn Wiley & Sons Inc Version 4.24.2.4

Explanation / Answer

Note for understanding : Whenever there is divisions in the company & there involve a common fixed cost , the break even point in dollor for the company is calculated on the basis of sales mix.

Break even point in dollor = Total Fixed Cost / Weighted Avg contribution margin (CM)

Where , Weighted Avg contribution margin (CM) :

(CM ratio of Boston * sale mix for Boston ) + (CM ratio of Seattle * sale mix for Seattle )

= (0.4*0.7) + (0.3*0.3) = 0.37

Therefore , Break even point in dollor for Vaughn = $3,237,500 /0.37 = $8,750,000 (ie option c)

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