Question
Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement shown below:: Total Company North South
Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement shown below::
Total Company North South
Sales $ 750,000 $ 600,000 $150,000
Variable expenses 510,000 480,000 30,000
Contribution margin 240,000 120,000 120,000
Traceable fixed expenses 128,000 64,000 64,000
Segment margin 112,000 56,000 56,000
Common fixed expenses 54,000
Net operating income $ 58,000
Required: 1. Compute the companywide break-even point in dollar sales.
Dollar sales for company to break-even
2. Compute the break-even point in dollar sales for the North region.
Dollar sales for a segment to break-even
3. Compute the break-even point in dollar sales for the South region.
Dollar sales for a segment to break-even
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