Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 Company North South
Sales $ 975,000 $ 650,000 $ 325,000
Variable expenses 585,000 455,000 130,000
Contribution margin 390,000 195,000 195,000
Traceable fixed expenses 162,000 81,000 81,000
Segment margin 228,000 $ 114,000 $ 114,000
Common fixed expenses 70,000
Net operating income $ 158,000

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.

(For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

l Identify the five steps in conducting a job analysis.

Answered: 1 week ago

Question

Explain the various techniques of Management Development.

Answered: 1 week ago