Tabuk’s Manufacturing Company has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period of 2019: Total Company Garden Division Farm Division Sales revenue $390,000 $270,000 $120,000 Variable expenses 95,400 59,400 36,000 Contribution margin 294,600 210,600 84,000 Traceable fixed expenses 223,000 165,000 58,000 Division profit margin 71,600 $45,600 $26,000 Common fixed expense 46,800 Net operating income $24,800 As a manager at the company your responsibilities are planning and directing the company, you are required to: Determine the break-even in sales dollars for the Garden Division's. Determine the break-even in sales dollars for the Farm Division's. Determine the company's overall break-even in sales dollars? What would be the company's overall net operating income if the company operated at its two division's break-even points?
Tabuk’s Manufacturing Company has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period of 2019: Total Company Garden Division Farm Division Sales revenue $390,000 $270,000 $120,000 Variable expenses 95,400 59,400 36,000 Contribution margin 294,600 210,600 84,000 Traceable fixed expenses 223,000 165,000 58,000 Division profit margin 71,600 $45,600 $26,000 Common fixed expense 46,800 Net operating income $24,800 As a manager at the company your responsibilities are planning and directing the company, you are required to: Determine the break-even in sales dollars for the Garden Division's. Determine the break-even in sales dollars for the Farm Division's. Determine the company's overall break-even in sales dollars? What would be the company's overall net operating income if the company operated at its two division's break-even points?
Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
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Chapter2: Basic Cost Management Concepts
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Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Tabuk’s Manufacturing Company has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period of 2019:
|
Total Company |
Garden Division |
Farm Division |
Sales revenue |
$390,000 |
$270,000 |
$120,000 |
Variable expenses |
95,400 |
59,400 |
36,000 |
Contribution margin |
294,600 |
210,600 |
84,000 |
Traceable fixed expenses |
223,000 |
165,000 |
58,000 |
Division profit margin |
71,600 |
$45,600 |
$26,000 |
Common fixed expense |
46,800 |
|
|
Net operating income |
$24,800 |
|
As a manager at the company your responsibilities are planning and directing the company, you are required to:
- Determine the break-even in sales dollars for the Garden Division's.
- Determine the break-even in sales dollars for the Farm Division's.
- Determine the company's overall break-even in sales dollars?
- What would be the company's overall net operating income if the company operated at its two division's break-even points?
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