Please show all steps HURST CORPORATION has two divisions: Home Division and Com

Question

Please show all steps

HURST CORPORATION has two divisions: Home Division and Commercial Division. The following report is for the most recent operating period:

The company's common fixed expenses total $125,280.

Required:

Prepare a contribution format income statement segmented by division.

What is the Home Division's break-even in sales dollars?

What is the Commercial Division's break-even in sales dollars?

What is the company's overall break-even in sales dollars?

Total Home Commercial Company Division Division Sales. Variable expenses. $696,000 $365,000 $331,000 $230,700 $131,400 $99,300 $296,000 $152,000 $144,000

Explanation / Answer

Prepare a contribution format income statement segmented by division.

What is the Home Division's break-even in sales dollars?

=Fixed Cost /Contrbution Ratio

=

What is the Commercial Division's break-even in sales dollars?

144000/70%

=205714.23

What is the company's overall break-even in sales dollars?

=296000/67%=442759.54

Home Commercial Sales 365000 331000 Variable Expense 131400 99300 contribution 233600 231700 Fixed Asset 152000 144000 Net Income 81600 87700

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