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Exercise 6-5 (Static) Companywide and Segment Break-Even Analysis [LO6-5] Piedmont Company segments its business into two regions-North and South. The company prepared the contribution
Exercise 6-5 (Static) Companywide and Segment Break-Even Analysis [LO6-5] Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Total Company North Sales $600,000 $ 400,000 South $200,000 Variable expenses 360,000 280,000 Contribution margin 240,000 Traceable fixed expenses 120,000 120,000 60,000 80,000 120,000 60,000 Segment margin Common fixed expenses 120,000 50,000 $ 60,000 $ 60,000 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. 1. Dollar sales for company to break-even 2. Dollar sales for North segment to break-even 3. Dollar sales for South segment to break-even
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