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 $ 937,500 637,500 300,000 152,000 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 148,000 64,000 $ 84,000 North $750,000 600,000 150,000 76,000 $ 74,000 South $ 187,500 37,500 150,000 76,000 $ 74,000 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 $ 937,500 637,500 300,000 152,000 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 148,000 64,000 $ 84,000 North $750,000 600,000 150,000 76,000 $ 74,000 South $ 187,500 37,500 150,000 76,000 $ 74,000 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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Alpesh
![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
$ 937,500
637,500
300,000
152,000
148,000
64,000
$ 84,000
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
North
$750,000
600,000
150,000
76,000
$ 74,000
South
$ 187,500
37,500
150,000
76,000
$ 74,000
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%2F66ec6b55-400a-438d-b302-bfc00a82fdd6%2Fa7bad8cf-b023-4ae3-b3ac-d7fa2d6197d4%2Fkvu2238_processed.jpeg&w=3840&q=75)
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
$ 937,500
637,500
300,000
152,000
148,000
64,000
$ 84,000
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
North
$750,000
600,000
150,000
76,000
$ 74,000
South
$ 187,500
37,500
150,000
76,000
$ 74,000
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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