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Merrimack Valley Company segments its business into two divisions-Food and Beverage. The company prepared the contribution format segmented income statement as shown: Total Company
Merrimack Valley Company segments its business into two divisions-Food and Beverage. The company prepared the contribution format segmented income statement as shown: Total Company Food Sales $975,000 $650,000 Beverage $325,000 Variable expenses 585,000 455,000 130,000 Contribution margin 390,000 195,000 195,000 Traceable fixed expenses 162,000 81,000 81,000 Segment margin 228,000 $114,000 $114,000 Common fixed expenses 70,000 Net operating income $158,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the Food division. 3. Compute the break-even point in dollar sales for the Beverage division. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.) 1. Dollar sales for company to break-even 2. Dollar sales for Food division to break-even 3. Dollar sales for Beverage division to break-even
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