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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 | $ | 800,000 | $ | 600,000 | $ | 200,000 | ||||||||||||||
Variable expenses | 560,000 | 480,000 | 80,000 | |||||||||||||||||
Contribution margin | 240,000 | 120,000 | 120,000 | |||||||||||||||||
Traceable fixed expenses | 126,000 | 63,000 | 63,000 | |||||||||||||||||
Segment margin | 114,000 | $ | 57,000 | $ | 57,000 | |||||||||||||||
Common fixed expenses | 54,000 | |||||||||||||||||||
Net operating income | $ | 60,000 | ||||||||||||||||||
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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