Question
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
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 | $ | 937,500 | $ | 750,000 | $ | 187,500 | ||
Variable expenses | 637,500 | 600,000 | 37,500 | |||||
Contribution margin | 300,000 | 150,000 | 150,000 | |||||
Traceable fixed expenses | 152,000 | 76,000 | 76,000 | |||||
Segment margin | 148,000 | $ | 74,000 | $ | 74,000 | |||
Common fixed expenses | 64,000 | |||||||
Net operating income | $ | 84,000 | ||||||
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.)
1. | Break-even point in dollar sales | ?????? |
2. | Break-even point in dollar sales for the North region | ?????? |
3. | Break-even point in dollar sales for the South region | ????? |
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