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ch 6 exer 6 Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format segmented income statement shown below:
ch 6 exer 6
| Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format segmented income statement shown below: |
| Total Company | North | South | ||||
| Sales | $ | 675,000 | $ | 450,000 | $ | 225,000 |
| Variable expenses | 405,000 | 315,000 | 90,000 | |||
| | | | | | | |
| Contribution margin | 270,000 | 135,000 | 135,000 | |||
| Traceable fixed expenses | 150,000 | 75,000 | 75,000 | |||
| | | | | | | |
| Segment margin | 120,000 | $ | 60,000 | $ | 60,000 | |
| | | | | |||
| Common fixed expenses | 65,000 | |||||
| | | |||||
| Net operating income | $ | 55,000 | ||||
| | | |||||
| Required: |
| a. | Compute the companywide break-even point in dollar sales . |
| b. | Compute the break-even point in dollar sales for the North region. |
| c. | Compute the break-even point in dollar sales for the South region. (Round your break-even dollar sales to the nearest whole number.) |
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Management Accounting Principles And Applications
Authors: Hugh Coombs, D Ellis Jenkins, David Hobbs
1st Edition
1412908434, 978-1412908436
