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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 | $ | 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 | 146,000 | 73,000 | 73,000 | |||||
Segment margin | 154,000 | $ | 77,000 | $ | 77,000 | |||
Common fixed expenses | 64,000 | |||||||
Net operating income | $ | 90,000 | ||||||
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.
1.Dollar sales for company to break-even
2.Dollar sales for North segment to break-even
3.Dollar sales for South segment to break-even
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