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	$	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 .

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

.

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