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Exercise 6-5 (Static) Companywide and Segment Break-Even Analysis [LOG-5] Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format
Exercise 6-5 (Static) Companywide and Segment Break-Even Analysis [LOG-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 $ 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 breakeven point in dollar sales. 2. Compute the breakeven point in dollar sales for the North region. 3. Compute the breakeven 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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