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 $ 800,000 560,000 240,000 122,000 118,000 52,000 $ 66,000 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. North $ 600,000 480,000 120,000 61,000 $ 59,000 South $ 200,000 80,000 120,000 61,000 $ 59,000

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Chapter1: Financial Statements And Business Decisions
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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
$ 800,000
560,000
240,000
122,000
118,000
52,000
$ 66,000
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
$ 600,000
480,000
120,000
61,000
$ 59,000
< Prev
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.)
South
$ 200,000
‒‒‒
2 of 2
www
‒‒‒
80,000
120,000
61,000
$ 59,000
Next
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 $ 800,000 560,000 240,000 122,000 118,000 52,000 $ 66,000 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 $ 600,000 480,000 120,000 61,000 $ 59,000 < Prev 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.) South $ 200,000 ‒‒‒ 2 of 2 www ‒‒‒ 80,000 120,000 61,000 $ 59,000 Next
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