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 | $ | 937,500 | $ | 750,000 | $ | 187,500 | ||
Variable expenses | 637,500 | 600,000 | 37,500 | |||||
Contribution margin | 300,000 | 150,000 | 150,000 | |||||
Traceable fixed expenses | 152,000 | 76,000 | 76,000 | |||||
Segment margin | 148,000 | $ | 74,000 | $ | 74,000 | |||
Common fixed expenses | 64,000 | |||||||
Net operating income | $ | 84,000 | ||||||
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.
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