Question
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 | $ | 937,500 |
| $ | 750,000 |
| $ | 187,500 |
Variable expenses |
| 637,500 |
|
| 600,000 |
|
| 37,500 |
Contribution margin |
| 300,000 |
|
| 150,000 |
|
| 150,000 |
Traceable fixed expenses |
| 142,000 |
|
| 71,000 |
|
| 71,000 |
Segment margin |
| 158,000 |
| $ | 79,000 |
| $ | 79,000 |
Common fixed expenses |
| 62,000 |
|
|
|
|
|
|
Net operating income | $ | 96,000 |
|
|
|
|
|
|
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.)
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