Exercise 6-5 (Algo) Companywide and Segment Break-Even Analysis [LO6-5] 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 $ 937,500 637,500 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 300,000 142,000 158,000 62,000 $ 96,000 North $750,000 600,000 150,000 71,000 $ 79,000 South $ 187,500 37,500 150,000 71,000 $79,000 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.)
Exercise 6-5 (Algo) Companywide and Segment Break-Even Analysis [LO6-5] 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 $ 937,500 637,500 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 300,000 142,000 158,000 62,000 $ 96,000 North $750,000 600,000 150,000 71,000 $ 79,000 South $ 187,500 37,500 150,000 71,000 $79,000 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 6-5 (Algo) Companywide and Segment Break-Even Analysis [LO6-5]
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
$ 937,500
637,500
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
300,000
142,000
158,000
62,000
$ 96,000
North
South
$750,000 $ 187,500
600,000
37,500
150,000
71,000
$ 79,000
150,000
71,000
$79,000
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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5c3e332c-b8c2-4ed0-b345-1626c419d852%2F125be83d-30e8-49e4-8fc9-a38ec1364b5c%2F8uteden_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 6-5 (Algo) Companywide and Segment Break-Even Analysis [LO6-5]
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
$ 937,500
637,500
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
300,000
142,000
158,000
62,000
$ 96,000
North
South
$750,000 $ 187,500
600,000
37,500
150,000
71,000
$ 79,000
150,000
71,000
$79,000
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.)
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