Therrell Corporation has two divisions: Bulb Division and Seed Division. The fol

Question

Therrell Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating period:

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.)

Seed Bulb Division Division $310,50e $207,000 $80,730 43, 470 Sales Variable expenses Traceable fixed expenses Common fixed expense $ 29,220 $19,480

Explanation / Answer

Bulb Seed Total Sales 310500 207000 517500 Variable expenses 80730 43470 124200 Contribution margin 229770 163530 393300 Contribution margin ratio 74% 79% 76% a Bulb's division break even = 128800/74%= 174054 b Seed's division break even = 93150/79%= 117911 c Overall break even =(128800+93150+29220+19480)/76%= 356118

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