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 Total Company $ 675,000 405,000 North $ 450,000 South $ 225,000 315,000 270,000 150,000 120,000 65,000 135,000 75,000 $ 60,000 90,000 135,000 75,000 $ 60,000 $ 55,000 Net operating income 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. Note: For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.
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 Total Company $ 675,000 405,000 North $ 450,000 South $ 225,000 315,000 270,000 150,000 120,000 65,000 135,000 75,000 $ 60,000 90,000 135,000 75,000 $ 60,000 $ 55,000 Net operating income 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. Note: For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.
Survey of Accounting (Accounting I)
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ISBN:9781305961883
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![Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format
segmented income statement as shown:
Total Company
$ 675,000
North
$ 450,000
South
$ 225,000
Sales
Variable expenses
Contribution margin
Traceable fixed expenses
Segment margin
Common fixed expenses
405,000
270,000
150,000
315,000
135,000
75,000
90,000
135,000
75,000
120,000
$ 60,000
$ 60,000
65,000
$ 55,000
Net operating income
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.
Note: For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest
dollar.
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa48b5257-185a-43a8-860c-c0e96e8c856d%2F28c6eb89-dccb-4584-9405-3139fe198602%2F4ykhy6q_processed.png&w=3840&q=75)
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
$ 675,000
North
$ 450,000
South
$ 225,000
Sales
Variable expenses
Contribution margin
Traceable fixed expenses
Segment margin
Common fixed expenses
405,000
270,000
150,000
315,000
135,000
75,000
90,000
135,000
75,000
120,000
$ 60,000
$ 60,000
65,000
$ 55,000
Net operating income
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.
Note: For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest
dollar.
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
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