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Piedmont Companyr segments its business into two regionsNorth and South. The company prepared the contribution fom'iat segmented income statement as shown: Total Company North South Sales $ 937,500 5 150,004] $ 187,500 Variable expenses 637,500 600,000 37,500 Contribution margin 300,000 150,000 150,000 Traceehle fixed expenses 142,000 71, [Hill] 71, 000 Shipped Segment margin 158,000 5 TQJWID $ T9,!)0l] Gammon fixed expenses 62,000 Net operating immune $ 96,000 Required: 1. Compute the company-wide 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.) (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 sales for North segment to break-even 3. Dollar sales for South segment to break-evenWingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most 1 0 recent monthly contribution format income statement: Sales $ 1,602,000 Variable expenses 586,130 Contribution margin 1,015,320 Fixed expenses 1 , l 17, 000 Net operating income (loss) $ (101,100) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division East Central West Sales $3?2,000 $T00,000 $530,000 Variable expenses as a percentage of sales 54% 24% 41% Traceable fixed expenses $233,000 $321,000 $200,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a' The Marketing Department has proposed increasing the West Division's monthly advertising by $21,000 based on the belief that it would increase that division's sales by 18%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2-b. Would you recommend the increased advertising? Complete this question by enterlng your answers In the tabs below. Req 1 Req 2A Rec] 23 Prepare a cont-ibuon format lnoome statement: segmented by divisions. Complete this question by entering your owners In the tabs below. The Marketing Department has proposed increasing the West Division's monthly advertising by $21,001:] based on the belief that it would Increase that division's sales by 18%. Assuming these atlmabes are accurate! how.I much would the company's net operating lnoome increase (decrease) If the proposal is implemented? (Do not round Intermediate calculations.) _:I:| Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Would you recommend the increased advertising? Yes ONO
