Check Piedmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carolina. All three products are sold in highly competitive markets, so the company is unable to raise ptices without losing an unacceptable number of customers. Data from the most recent period concerning these products appear below Annual sales volume Unit selling price Variable mpense per unit Contribution martin per unit Volero 100,00 5 1.05 3 1.25 $ 0.40 Metal 200,00 $1.50 $ 0.70 0.00 Hylon 401.600 50.85 $ 0.25 50.60 Total fixed expenses are $401600 per period of the total fixed expenses, $20,000 could be avoided if the Velcro product is dropped, $80,000 it the Metal product is dropped, and 560.000 if the Nylon product is dropped. The remaining tixed expenses of $241500 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely The company's managers would like to compute the break even point in dollar sales for the company as a whole and the break even point in unit sales for each product. They are considenng two methods for computing each products break even point unit sales: Method at include each product's traceable fixed costs and an allocated share of the common fixed costs in the numerator of each break even calculation The common fixed costs would be allocated to the three products using sales dollars as the allocation base Method #2 Only include each product's traceable fixed costs in the numerator of each break-even calculation Required: 1. Using data from the most recent period, prepare a contribution format segmented income statement 2. What is the company's overall break even point in dollar sales? 3a. Calculate the break-even point in unit sales for each product using method 1 Req 1 Reg 2 Req 3a and 3b Req 4a and 4b Req 5 Using data from the most recent period, prepare a contribution format segmented income statemer Piedmont Fasteners Corporation Contribution Format Income Statement Velcro Metal Nylon Total 6 Variable Costing and Segment Reporting Saved Help --- 11 12 4a Calculate the break-even point in unit sales for each product using method 2 4b. If the company sells exactly the break-even quantity of each product, what will be the overall profit for the company using 29 5. Which method should the company use to calculate each product's break even point in unit sales? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3a and 3b Reg 4a and 4b Reg 5 What is the company's over all break-even point in dollar sales? (Round your intermediate calculations to 4 decimal places and final answer to the nearest whole number.) Ovorall broak-aven point Saved ariable Costing and Segment Reporting 12 4a. Calculate the break-even point in unit sales for each product using method 2 4b. If the company sells exactly the break-even quantity of each product, what will be the overall profit for the company us 22 5. Which method should the company use to calculate each product's break-even point in unit sales? Complete this question by entering your answers in the tabs below. Regt Reg 2 Reg 3a and 3b Reg 43 and 4b Reg 5 3a. Calculate the break-even point in unit sales for each product using method 1. (Do not round Intermediate calculations an final answers to the nearest whole number) 3b. If the company sells exactly the break even quantity of each product what will be the overall profit for the company usin method 1? Show less 3a. Velcro's Break-even point in units 3a. Metal's Break-even point in units 3a. Nylon's Break-even point in units 36. Overall profit (loss) 11 4a Calculate the break even point in unit sales for each product using method 2 46. If the company sells exactly the break-even quantity of each product, what will be the overall profit for the company usir 22 5. Which method should the company use to calculate each product's break-even point in unit sales? pomt Complete this question by entering your answers in the tabs below. Rea 1 Reg 2 Reg 33 and 3b Reg 4a and 4b Red 5 4a. calculate the break even point in unit bales for each product using method 2. 4b. If the company sells exactly the break even quantity of each product what will be the overall profit for the company using method 22 4a. Volero's Break-even point in units 4a Motal's Break oven point in its 4a Nylon's Broak-even point in units 4b. Overall proft (los) 12 4a. Calculate the break-even point in unit sales for each product using method 2 4b. If the company sells exactly the break-even quantity of each product, what will be the overall profit fc 2? 5. Which method should the company use to calculate each product's break-even point in unit sales? Complete this question by entering your answers in the tabs below. Reg 1 Reg 5 Reg 2 Req 3a and 3b Reg 4a and 4b Which method should the company use to calculate each product's break-even point in unit sales? Method 1 Method 2
