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EXERCISE 6-5 Companywide and Segment Break-Even Analysis (L06-5) Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented
EXERCISE 6-5 Companywide and Segment Break-Even Analysis (L06-5) Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement shown below: Total Company North South Sales $600,000 $400,000 $200,000 Variable expenses 360,000 280,000 80,000 Contribution margin 240,000 120,000 120,000 Traceable fixed expenses 120,000 60,000 60,000 Segment margin .. 120,000 $60,000 $ 60,000 Common fixed expenses 50,000 Net operating income. $ 70,000 .... 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
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