Exercise 6-5 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 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		156,000		78,000		78,000
Segment margin		174,000	$	87,000	$	87,000
Common fixed expenses		69,000
Net operating income	$	105,000

Required:

1.)

Compute the companywide break-even point in dollar sales .

Dollar sales for company to break even

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

Dollar sales for a segment to break even

3.	Compute the break-even point in dollar sales for the South region. (Round your break-even dollar sales to the nearest whole number.)

Dollar sales for a segment to break even