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Question - Petteway Corporation has two divisions: Home Division and Commercial Division. The following report is for the most recent operating period:
Total Company
Home Division
Commercial Division
Sales
$702,000
$354,000
$348,000
Variable expenses
$242,460
$138,060
$104,400
Traceable fixed expenses
$325,000
$152,000
$173,000
Common fixed expense
$77,220
$38,940
$38,280
The common fixed expenses have been allocated to the divisions on the basis of sales.
Required -
a. What is the Home Division's break-even in sales dollars?
b. What is the Commercial Division's break-even in sales dollars?
c. What is the company's overall break-even in sales dollars?
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