.Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income tatement as shown: Total Company North South Sales $ 600,000 $ 400,000 $ 200,000 Jariable expenses 360,000 280,000 80,000 Contribution margin 240,000 120,000 120,000 Traceable fixed expenses 120,000 60,000 60,000 Segment margin 120,000 $ 60,000 $60,000 Common fixed expenses 50,000 Net operating income $70,000 Required: . 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.

.Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income tatement as shown: Total Company North South Sales $ 600,000 $ 400,000 $ 200,000 Jariable expenses 360,000 280,000 80,000 Contribution margin 240,000 120,000 120,000 Traceable fixed expenses 120,000 60,000 60,000 Segment margin 120,000 $ 60,000 $60,000 Common fixed expenses 50,000 Net operating income $70,000 Required: . 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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