Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Total Company North $ 825,000 Sales South $ 550,000 $275,000 385,000 110,000 165,000 165,000 72,000 $ 93,000 Variable expenses 495,000 Contribution margin 330,000 Traceable fixed expenses 144,000 Segment margin 186,000 64,000 Common fixed expenses Net operating income $ 122,000 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.) 72,000 $ 93,000
Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Total Company North $ 825,000 Sales South $ 550,000 $275,000 385,000 110,000 165,000 165,000 72,000 $ 93,000 Variable expenses 495,000 Contribution margin 330,000 Traceable fixed expenses 144,000 Segment margin 186,000 64,000 Common fixed expenses Net operating income $ 122,000 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.) 72,000 $ 93,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Piedmont Company segments its business into two regions-North and South. The company prepared
the contribution format segmented income statement as shown:
Total Company North
$ 825,000
Sales
South
$ 550,000 $275,000
385,000
110,000
165,000 165,000
72,000
72,000
$ 93,000
Variable expenses
495,000
Contribution margin 330,000
Traceable fixed expenses 144,000
Segment margin 186,000
64,000
Common fixed expenses
Net operating income $ 122,000
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.)
$ 93,000
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