When using data from a segmented income statement, the dollar sales for a segment to break even is equal to:
A)Common fixed expenses ÷ Unit CM
B)Common fixed expenses ÷ Segment CM ratio
C)Traceable fixed expenses ÷ Unit CM
D)Traceable fixed expenses ÷ Segment CM ratio

Question

Quizplus · Accepted Answer

The break-even point for a segment is calculated by dividing the traceable fixed expenses by the segment's contribution margin ratio.

When Using Data from a Segmented Income Statement, the Dollar