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Homework answers / question archive / Gough Corporation has two divisions: Domestic and Foreign

Gough Corporation has two divisions: Domestic and Foreign

Accounting

Gough Corporation has two divisions: Domestic and Foreign. Data from the most recent month

appears below:

                                                           Total company          Domestic       Foreign

Sales                                                    $668,000                $347,000      $321,000

Variable expenses                                  220,530                  72,870        147,660

Contribution margin                               447,470                   274,130      173,340     

Traceable fixed expenses                      335,000                   201,000      134,000

Segment margin                                    112,470                   73,130           39,340

Common fixed expenses                        73,480

Net operating income                              38,990

The break-even in sales dollars for the company as a whole is closest to:

a) $502,579

b) $107,216

c) $609,794

d) $436,424

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