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The following is a segmented income statement for Company M: ...

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Accounting

The following is a segmented income statement for Company M:

Total Division A Division B
Sales $5,000 $3,000 $2,000
- Variable Costs -1,100 -600 -500
Contribution Margin 3,900 2,400 1,500
- Traceable Fixed Costs -500 -300 -200
Segment Margin 3.400 2,100 1,300
-Common Fixed Costs -900
Net Operating Income $2,500

What is the break even point for Division B?
  • A.

    $375

  • B.

    $384.62

  • C.

    $266.67

  • D.

    $1,733.33

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