Kadle Corporation has two divisions: Division L and Division Q.Data from the most recent month appear below: The break-even in sales dollars for Division Q is closest to:
A)$262, 742
B)$506, 955
C)$153, 030
D)$199, 121

Question

Kadle Corporation has two divisions: Division L and Division Q.Data from the most recent month appear below:  The break-even in sales dollars for Division Q is closest to:
A)$262, 742 
B)$506, 955 
C)$153, 030 
D)$199, 121

Quizplus · Accepted Answer

Division Q:
Segment CM ratio = Segment contribution margin ÷ Segment sales
= $155, 400 ÷ $234, 000 = 0.66
Dollar sales for a segment to break even = Segment traceable fixed expenses ÷ Segment CM ratio
= $101, 000 ÷ 0.66 = $153, 030

Kadle Corporation Has Two Divisions: Division L and Division Q