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Business, 19.05.2020 13:11 mtzann1568

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 $ 302,000 $ 160,200 $ 141,800
Variable expenses $ 117,780 $ 62,478 $ 55,302
Traceable fixed expenses $ 177,300 $ 60,800 $ 116,500
Common fixed expense $ 60,400 $ 32,040 $ 28,360

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:

Multiple Choice

a.$190,984

b.$129,762

c.$152,197

d.$198,689

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Answers: 2

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