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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 | $ 675,000 | $ 450,000 | $ 225,000 |
Variable expenses | 405,000 | 315,000 | 90,000 |
Contribution margin | 270,000 | 135,000 | 135,000 |
Traceable fixed expenses | 150,000 | 75,000 | 75,000 |
Segment margin | 120,000 | $ 60,000 | $ 60,000 |
Common fixed expenses | 65,000 | ||
Net operating income | $ 55,000 |
Required:
- Compute the companywide break-even point in dollar sales.
- Compute the break-even point in dollar sales for the North region.
- Compute the break-even point in dollar sales for the South region.
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