Kneeland Corporation has two divisions: Grocery Division and Convenience Division. The following report is for the most recent operating period:
Total Company
Grocery Division
Convenience Division
Sales
$427,000
$321,000
$106,000
Variable expenses
$119,380
$70,620
$48,760
Contribution margin
$307,620
$250,380
$57,240
Traceable fixed expenses
$239,000
$194,000
$45,000
Segment margin
$68,620
$56,380
$12,240
Common fixed expense
$46,970
$35,310
$11,660
Net operating income
$21,650
$21,070
$580
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?