Carriveau Corporation Has Two Divisions: Consumer Division and Business Division

question 125

Multiple Choice

Carriveau Corporation has two divisions: Consumer Division and Business Division. The following data are for the most recent operating period:
The company's common fixed expenses total $63,360.
-The Business Division's break-even sales is closest to:

• A) $488,153
• B) $218,355
• C) $266,263
• D) $182,895

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Definitions:

Pre-Tax Income

Earnings before taxes (EBT), calculated as a company's total revenues minus expenses, excluding income taxes, during a reporting period.

Realized Gain

The profit earned from selling an asset for more than its purchase price, indicating a successful investment.

Trading Securities

Financial assets that are bought and held primarily for selling in the near term to generate income on short-term price differences.

Selling Price

the amount of money for which a good or service is sold to a customer, not necessarily reflecting the cost of production or provision.