Therrell Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating period: Bulb Division Seed Division Sales $ 282,000 $ 188,000 Variable expenses $ 73,320 $ 39,480 Traceable fixed expenses $ 174,440 $ 84,600 Common fixed expense $ 32,640 $ 21,760 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?
Therrell Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating period: Bulb Division Seed Division Sales $ 282,000 $ 188,000 Variable expenses $ 73,320 $ 39,480 Traceable fixed expenses $ 174,440 $ 84,600 Common fixed expense $ 32,640 $ 21,760 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?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 7E: Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments,...
Related questions
Question
Therrell Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating period:
Bulb Division | Seed Division | |||
Sales | $ | 282,000 | $ | 188,000 |
Variable expenses | $ | 73,320 | $ | 39,480 |
Traceable fixed expenses | $ | 174,440 | $ | 84,600 |
Common fixed expense | $ | 32,640 | $ | 21,760 |
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.)
a.Bulb Division’s break-even in sales dollars
b.Seed Division’s break-even in sales dollars
c.Company’s overall break-even in sales dollars
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning