Bertie Corporation has two divisions: Retail Division and Wholesale Division. The following data are for the most recent operating period:

Total Company Retail Division Wholesale Division

Sales

$ 644,600

$ 397,500

$ 247,100

Variable expenses

$ 186,827

$ 95,400

$ 91,427

Traceable fixed expenses $ 312,500

$ 230.100

$ 82,400

The common fixed expenses of the company are $98,900.

The Wholesale Division's break-even sales is closest to:

O $130,794

0 $296,551

0 $156,984

O $496,032

To calculate the break-even sales for the Wholesale Division, we need to find the point at which the division’s **contribution margin** covers all of its **traceable fixed expenses**. Common fixed expenses are not included in this division’s break-even analysis because they are not directly traceable to it.

### Step-by-Step Solution

1. **Calculate the Contribution Margin for the Wholesale Division**

   The **contribution margin** is calculated as:
   \[
   \text{Contribution Margin} = \text{Sales} - \text{Variable Expenses}
   \]

   Using the provided values:
   \[
   \text{Contribution Margin} = 247,100 - 91,427 = 155,673
   \]

2. **Determine the Contribution Margin Ratio for the Wholesale Division**

   The **contribution margin ratio** is calculated as:
   \[
   \text{Contribution Margin Ratio} = \frac{\text{Contribution Margin}}{\text{Sales}}
   \]

   Plugging in the values:
   \[
   \text{Contribution Margin Ratio} = \frac{155,673}{247,100} \approx 0.63
   \]

3. **Calculate the Break-even Sales for the Wholesale Division**

   To find the break-even sales, we use the formula:
   \[
   \text{Break-even Sales} = \frac{\text{Traceable Fixed Expenses}}{\text{Contribution Margin Ratio}}
   \]

   Substituting the values:
   \[
   \text{Break-even Sales} = \frac{82,400}{0.63} \approx 130,794
   \]

### Conclusion

The Wholesale Division's break-even sales is closest to:
\[
\boxed{130,794}
\]

### Final Answer
- **Correct Answer:** $130,794

Would you like additional details on any part of this solution, or do you have further questions?

---

1. How does the contribution margin ratio influence break-even calculations?
2. What are traceable fixed expenses, and why aren’t common fixed expenses included in division-specific break-even analysis?
3. How does a company's structure (divisions) affect financial analysis?
4. What steps are taken if actual sales fall below the break-even point?
5. How can a company improve its contribution margin ratio?

**Tip:** Remember, contribution margin ratio helps quickly assess how much of each sales dollar is available to cover fixed expenses after variable costs.

Bertie Corporation has two divisions: Retail Division and Wholesale Division. The following data are for the most recent operating period:

Total Company Retail Division Wholesale Division

Sales

$ 644,600

$ 397,500

$ 247,100

Variable expenses

$ 186,827

$ 95,400

$ 91,427

Traceable fixed expenses $ 312,500

$ 230,100

$ 82,400

The common fixed expenses of the company are $98,900.

The Wholesale Division's break-even sales is closest to:

O $130,794

O $296,551

O $156,984

O $496,032

Learn how to calculate the break-even sales for Bertie Corporation's Wholesale Division using contribution margin analysis. The problem involves analyzing sales, variable expenses, and traceable fixed expenses, suitable for college-level finance or advanced high school students.

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