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Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban Greengrow $ 9.00 $ 33.00 $ 2.90 $ 13.00 $ 136,000 $ 39,000 Last year the company produced and sold 36,500 units of Weedban and 22,500 units of Greengrow. Its annual common fixed expenses are $113,000. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Company Weedban Greengrow 0 0 0 0 $ 0 $ 0 $ 0 Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 800,000 560,000 240,000 126,000 114,000 54,000 $ 60,000 North $ 600,000 480,000 120,000 63,000 $ 57,000 South $ 200,000 80,000 120,000 63,000 $ 57,000 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.) 1. Dollar sales for company to break-even 2. Dollar for North segment to break-even 3. Dollar sales for South segment to break-even
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