Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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.
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