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4. Famous R&B artist Omarion's arguably most famous solo hit is Ice Box. To try and embark on a new money-making journey, Omarion made a
4. Famous R&B artist Omarion's arguably most famous solo hit is Ice Box. To try and embark on a new money-making journey, Omarion made a new ice box company, which has two divisions: 'Home Division, for the smaller ice boxes that are more for convenience, and Commercial Division, for giant fridge-like ice boxes. The following report is for the most recent operating period (completely NOT based on a true story): Sales.. Variable expenses. Traceable fixed expenses Common fixed expense. Total Company $700,000 $303,200 $265,000 $70,000 Home Division $324,000 $149,040 $106,000 $32,400 Commercial Division $376,000 $154,160 $159,000 $37,600 The common fixed expenses have been allocated to the divisions on the basis of sales. A) Name one issue with Omarion's (or Omarion's internal accountant's) segmented income statement. B) What is the Home Division's break-even in sales dollars? C) What is the Commercial Division's break-even in sales dollars? D) What is the company's overall break-even in sales dollars? E) Omarion is confused as to why the sum of the two product division segment break- even sales does not equal the company's break-even. Explain to Omarion (brief is fine) why this may be the case
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