Question
Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period: Total Company Southern Division Northern
Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period:
| Total Company | Southern Division | Northern Division | ||||||
| Sales | $ | 418,000 | $ | 193,000 | $ | 225,000 | ||
| Variable expenses | $ | 130,880 | $ | 79,130 | $ | 51,750 | ||
| Traceable fixed expenses | $ | 186,000 | $ | 77,000 | $ | 109,000 | ||
| Common fixed expense | $ | 79,420 | $ | 36,670 | $ | 42,750 | ||
The common fixed expenses have been allocated to the divisions on the basis of sales. The company's overall break-even sales is closest to:
| $272,067 | ||
| $114,341 | ||
| $328,299 | ||
| $386,408 |
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Authors: Moira, Rumsey
1st Edition
1898845026, 978-1898845027
