Waltz Corporation Has Two Divisions: Xi and Sigma

question 208

Multiple Choice

Waltz Corporation has two divisions: Xi and Sigma. Data from the most recent month appear below: The company's common fixed expenses total $65,100. The break-even in sales dollars for Sigma Division is closest to:

• A)$283,218
• B)$379,037
• C)$414,904
• D)$131,685

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Definitions:

Financial Break-Even

The point at which total revenue exactly covers total costs, leaving no profit or loss.

Financial Basis

The underlying value or cost used for tax purposes, to calculate capital gain or loss upon the sale of an asset, including adjustments for improvements, depreciation, and costs of sale.

Pay Back

The process of returning or repaying borrowed funds, especially the principle amount of a loan.

Accounting Break-Even

The point at which total costs and total revenues are exactly equal, resulting in neither profit nor loss.