Imont Company segments its business into two regions-North and South. The company prepared the c mented income statement as shown: les ■riable expenses ontribution margin aceable fixed expenses egment margin mmon fixed expenses et operating income Total Company $ 825,000 495,000 330,000 144,000 186,000 64,000 $ 122,000 $ North 550,000 385,000 165,000 72,000 $ 93,000 South $ 275,000 110,000 165,000 72,000 $ 93,000

FINANCIAL ACCOUNTING
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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
$ 825,000
495,000
330,000
144,000
186,000
64,000
$ 122,000
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
$ 550,000
385,000
165,000
72,000
$ 93,000
South
$ 275,000
110,000
165,000
72,000
$ 93,000
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.)
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 $ 825,000 495,000 330,000 144,000 186,000 64,000 $ 122,000 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 $ 550,000 385,000 165,000 72,000 $ 93,000 South $ 275,000 110,000 165,000 72,000 $ 93,000 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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