Question
Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format segmented income statement as shown: Co. Total North South
Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format segmented income statement as shown:
| Co. Total | North | South |
Sales | 800,000 | 600,000 | 200,000 |
Variable expenses | 560,000 | 480,000 | 80,000 |
Contribution margin | 240,000 | 120,000 | 120,000 |
Traceable fixed expenses | 122,000 | 61,000 | 61,000 |
Segment margin | 118,000 | 59,000 | 59,000 |
Common fixed expenses | 52,000 |
|
|
Net operating income | 66,000 |
|
|
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.)
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