Question
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 132,000 66,000 66,000
Segment margin 108,000 $ 54,000 $ 54,000
Common fixed expenses 56,000
Net operating income $ 52,000
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.
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