Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented Income statement as shown: Total Company $
Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented Income statement as shown: Total Company $ 937,500 Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income North 637,500 $ 750,000 600,000 South $ 187,500 37,500 300,000 150,000 152,000 148,000 76,000 $ 74,000 150,000 76,000 $ 74,000 64,000 $ 84,000 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.) 1. Dollar sales for company to break even 2. Dollar sales for North segment to break even 3. Dollar sales for South segment to break even Shannon Company segments Its Income statement Into Its North and South Divisions. The company's overall sales, contribution margin ratio, and net operating Income are $380,000, 34%, and $7,600, respectively. The North Division's contribution margin and contribution margin ratio are $83,600 and 38%, respectively. The South Division's segment margin is $19,200. The company has $45,600 of common fixed expenses that cannot be traced to either division. Required: Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions. In addition, for the company as a whole and for each segment, show each item on the segmented Income statements as a percent of sales. (Round your percentage answers to 1 decimal place (l.e .1234 should be entered as 12.3).) Total Company Amount Divisions North South % Amount % Amount %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started