Question

Therrell Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating period:

	Bulb Division		Seed Division
Sales	$	225,000	$	150,000
Variable expenses	$	58,500	$	31,500
Traceable fixed expenses	$	143,600	$	61,500
Common fixed expense	$	30,540	$	20,360

The common fixed expenses have been allocated to the divisions on the basis of sales.

Required:

a. What is the Bulb Division’s break-even in sales dollars?

b. What is the Seed Division’s break-even in sales dollars?

c. What is the company’s overall break-even in sales dollars?

(For all requirements, do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.