Minick Corporation Has Two Divisions: Grocery Division and Convenience Division

question 160

Essay

Minick Corporation has two divisions: Grocery Division and Convenience Division. The following report is for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales.
Required:
a. What is the Grocery Division's break-even in sales dollars?
b. What is the Convenience Division's break-even in sales dollars?
c. What is the company's overall break-even in sales dollars?
d. What would be the company's overall net operating income if the company operated at its two division's break-even points?

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Definitions:

Horizontal Communication

The exchange of information, ideas, or messages among individuals or groups at the same level in an organization.

Pelz Effect

Subordinates feel more satisfied in their jobs the more their supervisors are able to influence higher-level decisions.

Manager's Power

The authority and influence a manager has over their direct reports, stemming from their position and the ability to affect employees' tasks and outcomes.

Newcomer Assimilation

The process by which a new member of a community, organization, or culture adopts its norms and practices.