Exercise 5-5 Companywide and Segment Break-Even Analysis [LO5-5]

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	$	825,000	$	550,000	$	275,000
Variable expenses		495,000		385,000		110,000
Contribution margin		330,000		165,000		165,000
Traceable fixed expenses		144,000		72,000		72,000
Segment margin		186,000	$	93,000	$	93,000
Common fixed expenses		64,000
Net operating income	$	122,000

Required:

1. Compute the companywide break-even point in dollar sales.

2. Compute the break-even point in dollar sales for the North region.

3. Compute the break-even point in dollar sales for the South region.