Exercise 7-5 Companywide and Segment Break-Even Analysis [LO7-5]

Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format segmented income statement as shown:

Total CompanyNorthSouthSales$600,000$400,000$200,000Variable expenses360,000280,00080,000Contribution margin240,000120,000120,000Traceable fixed expenses120,00060,00060,000Segment margin120,000$60,000$60,000Common fixed expenses50,000Net 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.