Pevy Corporation Has Two Divisions: Southern Division and Northern Division

question 39

Multiple Choice

Pevy Corporation has two divisions: Southern Division and Northern Division.The following data are for the most recent operating period: 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:

• A)$104, 400
• B)$131, 900
• C)$86, 250
• D)$286, 163

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Definitions:

Duopoly

A market structure dominated by two firms, often leading to strategic competition and pricing.

Maximize Profits

Strategies and actions taken by businesses to increase the difference between their total revenues and total costs.

Individual Profits

The net earnings obtained by a person after subtracting all relevant expenses from their revenue.

Cartel

An association of manufacturers or suppliers created to maintain high prices and restrict competition.