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Pledmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carollina-tull three products are sold in highly competivive markets, so the

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Pledmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carollina-tull three products are sold in highly competivive markets, so the company is unable to raise prices without losing an unacceptable number of customers. Data from the most recent period concerning these products appear below. Total fixed expenses are $416,000 per period. Of the total fixed expenses, $20,000 could be avolded th the Velcro product is dropped. $80,000 if the Metal product is dropped, and $60,000 if the Nylon product is dropped. The remaining fixed expenses of $256,000 consist of common fixed expenses such as administrative salarles and rent on the foctory building that could be avolded only by going out of business entirely The companys managers would the to compute the break-even point dollar soles for the company as a whole, and the break-even point in unit sales for each product. They are considering two methods for computing each product's break.even point unit sales Method it Include each product's traceable fixed costs and an allocated share of the common fixed costs in the numerator of each breakeven calculation. The common fixed costs would be allocated to the three products using sales dollars as the allocation base Method z2 Only include each product's traceable fixed costs in the numerator of each break-even calculation. Required: 1. Using data from the most recent period, prepate a contribution format segmented income statement. 2. What is the company's overall break-even point in dollar sales? 3a. Calculate the break-even point in unit sales for each product using method 1. 3b. If the company sells exactiy the break-even quantity of each product. What will be the overail profit for the company using method 4o Celculate the break-even point in unit gales for each product using method 2 42. If the company selis exactiy the break-even quantity of each product, what will be the overall profit foc the company using method 5. Which metbod should the compariy use to calculate each products break-even point in unit sales

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