https://file.aiquickdraw.com/mathbot/file/17306536182588pyvsblw.jpg

To find the break-even point in sales dollars for the Echo Division, we can use the formula:

\[
\text{Break-even sales} = \frac{\text{Fixed Expenses}}{\text{Contribution Margin Ratio}}
\]

Here's how we can calculate it based on the information provided:

### Step 1: Calculate the Contribution Margin (CM) for Echo
\[
\text{Contribution Margin} = \text{Sales} - \text{Variable Expenses}
\]
For Echo:
\[
\text{CM} = 147,000 - 86,730 = 60,270
\]

### Step 2: Calculate the Contribution Margin Ratio (CMR) for Echo
\[
\text{Contribution Margin Ratio} = \frac{\text{Contribution Margin}}{\text{Sales}}
\]
\[
\text{CMR} = \frac{60,270}{147,000} \approx 0.41
\]

### Step 3: Calculate the Break-even Sales for Echo
Now, using Echo's traceable fixed expenses of $44,000:
\[
\text{Break-even Sales} = \frac{44,000}{0.41} \approx 107,317
\]

### Answer
The closest answer to this calculation is:
\[
\boxed{107,317}
\]

Would you like more details on this calculation or have any questions?

---

Here are some related questions that might expand your understanding:

1. How would the break-even point change if Echo's variable expenses increased?
2. What impact do common fixed expenses have on division break-even calculations?
3. How do you calculate the break-even point if both divisions share variable expenses?
4. What is the significance of the contribution margin ratio in break-even analysis?
5. How would the break-even sales for Echo change if its fixed expenses decreased?

**Tip:** Understanding contribution margin ratios is key in break-even analysis, as they show the portion of sales that contributes to covering fixed expenses.

Carlton Corporation has two divisions: Delta and Echo. Data from the most recent month appear below:

Delta:
- Sales: $254,000
- Variable expenses: $91,440
- Traceable fixed expenses: $99,000

Echo:
- Sales: $147,000
- Variable expenses: $86,730
- Traceable fixed expenses: $44,000

The company's common fixed expenses total $44,110. The break-even in sales dollars for Echo Division is closest to:

A) $146,756
B) $336,719
C) $214,902
D) $107,317

Calculate the break-even point in sales dollars for Echo Division at Carlton Corporation using break-even analysis, contribution margin ratio, and cost data. Ideal for students in Grades 10-12.

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