Question
Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format segmented income statement shown below: Total Company North South
Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format segmented income statement shown below:
Total Company North South
Sales $825,000 $550,000 $275,000
Variable Expenses 495,000 385,000 110,000
Contribution margin 330,000 165,000 165,000
Traceable fixed expenses 144,000 72,000 72,000
Segment margin 186,000 $93,000 $93,000
common fixed expenses 64,000
Net operating income $122,000
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.
Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format segmented income statement shown below: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 825,000 495,000 330,000 144,000 186,000 $ 64,000 122,000 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. $ $ North 550,000 385,000 165,000 72,000 93,000 South $ 275,000 110,000 165,000 72,000 $ 93,000Step by Step Solution
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