# Question 4 - Pevy Corporation has two divisions Southern...

• Test Prep
• 1

This preview shows page 1 out of 1 page.

Unformatted text preview: Pevy Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period: Total Southern Northern Company Division Division Sales \$332,000 \$200,000 \$132,000 Variable expenses \$92,400 \$66,000 \$26,400 Traceable f'xe‘j \$170,000 \$101,000 \$69,000 expenses C°mm°n f'xed \$36,520 \$22,000 \$14,520 expense The common ﬁxed expenses have been allocated to the divisions on the basis of sales. The Northern Division‘s break—even sales is closest to: 0 \$104,400 0 \$131,900 —) 0 \$86,250 6 . \$286,163 Segment contribution margin = Segment sales — Segment variable expenses = \$132,000 — \$26,400 = \$105,600 Segment CM ratio = Segment contribution margin + Segment sales = \$105,600 + \$132,000 = 0.800 Dollar sales for a segment to break even = Traceable ﬁxed expenses + Segment CM ratio = \$69,000 + 0,800 = \$86,250 ...
View Full Document

• Spring '18
• Daniel Gibbons
• Managerial Accounting, Southern Division, Northern Division, Segment CM ratio, Division Division, Segment contribution margin, Chapter Six Multiple Choice

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern