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 | $ 975,000 | $ 650,000 | $ 325,000 |
Variable expenses | 585,000 | 455,000 | 130,000 |
Contribution margin | 390,000 | 195,000 | 195,000 |
Traceable fixed expenses | 162,000 | 81,000 | 81,000 |
Segment margin | 228,000 | $ 114,000 | $ 114,000 |
Common fixed expenses | 70,000 | ||
Net operating income | $ 158,000 |
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.
Note: 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