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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
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 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.
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