Question
Rockfish Inc. reports operating income of $61,000 in the current year. Rockfish has two divisions, Division X and Division Z. Here are other data regarding
Rockfish Inc. reports operating income of $61,000 in the current year. Rockfish has two divisions, Division X and Division Z. Here are other data regarding Rockfishs current-year operating results:
|
| Total company | Division X | Division Z |
| Sales | $600,000 | $230,000 | $370,000 |
| Variable costs | $349,000 | $138,000 | $211,000 |
| Traceable fixed costs | $153,000 | $72,000 | $81,000 |
a. What is Division Xs contribution margin? Contribution margin ratio?
b. What amount of monthly sales revenue does Division X need to break-even?
d.
c. What is the segment margin of Division X? Division Z
What are Rockfish Inc.s common fixed costs?
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