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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 | $ 750,000 | $ 600,000 | $ 150,000 |
Variable expenses | 510,000 | 480,000 | 30,000 |
Contribution margin | 240,000 | 120,000 | 120,000 |
Traceable fixed expenses | 128,000 | 64,000 | 64,000 |
Segment margin | 112,000 | $ 56,000 | $ 56,000 |
Common fixed expenses | 54,000 | ||
Net operating income | $ 58,000 |
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.)
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