Exercise 6-5 (Algo) Companywide and Segment Break-Even Analysis [LO6-5]

Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format segmented income statement as shown:

	Total Company	North	South
Sales	$ 1,156,250	$ 925,000	$ 231,250
Variable expenses	786,250	740,000	46,250
Contribution margin	370,000	185,000	185,000
Traceable fixed expenses	156,000	78,000	78,000
Segment margin	214,000	$ 107,000	$ 107,000
Common fixed expenses	68,000
Net operating income	$ 146,000

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.

(For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.) \begin{tabular}{|l|l|} \hline 1. Dollar sales for company to break even & \\ \hline 2. Dollar sales for North segment to break even & \\ \hline 3. Dollar sales for South segment to break even & \\ \hline \end{tabular}