Question
Batista Company has two segments -Emily Products and Joshua Products. The company contribution format segmented income statement is shown below. Total Company Emily Products Joshua
Batista Company has two segments -Emily Products and Joshua Products. The company contribution format segmented income statement is shown below.
Total Company Emily Products Joshua Products Sales $900,000 $600,000 $300,000 Variable expenses 675,000 480,000 195,000 Contribution margin 225,000 120,000 105,000 Traceable fixed expenses 141,000 50,000 91,000 Segment margin 84,000 $70,000 $14,000 Common fixed expenses 59,000 Net operating income $25,000
Using the above data:
Part A: Compute the company wide break-even point in sales dollars.
Part B: Compute the break-even point in sales dollars for Emily Products.
Part C: Compute the break-even point in sales dollars for Joshua Products.
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