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Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format segmented income statement shown below: Total Company North South
Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format segmented income statement shown below:
| Total Company | North | South | ||||
| Sales | $ | 900,000 | $ | 675,000 | $ | 225,000 |
| Variable expenses | 630,000 | 540,000 | 90,000 | |||
| Contribution margin | 270,000 | 135,000 | 135,000 | |||
| Traceable fixed expenses | 132,000 | 66,000 | 66,000 | |||
| Segment margin | 138,000 | $ | 69,000 | $ | 69,000 | |
| Common fixed expenses | 57,000 | |||||
| Net operating income | $ | 81,000 | ||||
Required:
1. Compute the companywide break-even point in dollar sales.
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2. Compute the break-even point in dollar sales for the North region.
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3. Compute the break-even point in dollar sales for the South region.
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