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FAHAD BIN Question 1 Tabouk's Manufacturing Company has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period
FAHAD BIN Question 1 Tabouk's Manufacturing Company has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period of 2019: Total Company Garden Division Farm Division Sales revenue $390,000 $270,000 $120,000 Variable expenses 95,400 59,400 36,000 Contribution margin 294,600 210,600 84,000 Traceable fixed expenses 223,000 165,000 58,000 Division profit margin 71,600 $45,600 $26,000 Common fixed expense 46,800 Net operating income $24,800 As a manager at the company your responsibilities are planning and directing the company, you are required to: 1. Determine the break-even in sales dollars for the Garden Division's. (2 Marks) 2. Determine the break-even in sales dollars for the Farm Division's. (2 Marks) 3. Determine the company's overall break-even in sales dollars? (2 Marks) 4. What would be the company's overall net operating income if the company operated at its two division's break-even points? (2 Marks)
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