Answered step by step
Verified Expert Solution
Link Copied!
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 $ 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Auditing And Other Assurance Services

Authors: Ray Whittington, Kurt Pany

18th Edition

0077486277, 978-0077486273

More Books

Students explore these related Accounting questions

Question

Define and discuss affirmative action.

Answered: 3 weeks ago

Question

Discuss diversity management.

Answered: 3 weeks ago