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: Total Company $ 825,000 495,000 330,000 South North 156,000 174,000 69,000 $ 550,000 385,000 165,000 78,000 $ 87,000 $ 275,000 110,000 165,000 78,000 $ 87,000 $ 105,000 Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income 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 sales for North segment to break even 3. Dollar sales for South segment to break even

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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:
Total Company
$ 825,000
495,000
330,000
North
$ 550,000
385,000
South
$ 275,000
110,000
165,000
78,000
165,000
78,000
Sales
Variable expenses
Contribution margin
Traceable fixed expenses
Segment margin
Common fixed expenses
Net operating income
Required:
156,000
174,000
69,000
$ 87,000
$ 87,000
$ 105,000
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 sales for North segment to break even
3. Dollar sales for South segment to break even
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: Total Company $ 825,000 495,000 330,000 North $ 550,000 385,000 South $ 275,000 110,000 165,000 78,000 165,000 78,000 Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Required: 156,000 174,000 69,000 $ 87,000 $ 87,000 $ 105,000 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 sales for North segment to break even 3. Dollar sales for South segment to break even
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