Exercise 7-5 (Algo) Companywide and Segment Break-Even Analysis (LO7-5] 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 $ 975,000 585,000 390,000 162,000 North $ 650,000 455,000 195,000 81,000 228,000 5 114,000 70,000 $ 158,000 South $325,000 130,000 195,000 81,000 $ 114,000 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 7-5 (Algo) Companywide and Segment Break-Even Analysis (LO7-5] 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 $ 975,000 585,000 390,000 162,000 North $ 650,000 455,000 195,000 81,000 228,000 5 114,000 70,000 $ 158,000 South $325,000 130,000 195,000 81,000 $ 114,000 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
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
Transcribed Image Text:Exercise 7-5 (Algo) Companywide and Segment Break-Even Analysis [LO7-5)
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
$ 975,000
585,000
390,000
162,000
228,000
70,000
$ 158,000
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
South
$325,000
130,000
195,000
81,000
$ 114,000 $ 114,000
North
$ 650,000
455,000
195,000
81,000
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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