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 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 240,000 126,000 114,000 54,000 $ 60,000 North $ 600,000 480,000 120,000 63,000 $ 57,000 South $ 200,000 80,000 120,000 63,000 $57,000 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.)
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 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 240,000 126,000 114,000 54,000 $ 60,000 North $ 600,000 480,000 120,000 63,000 $ 57,000 South $ 200,000 80,000 120,000 63,000 $57,000 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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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:
Sales
Variable expenses
Contribution margin
Traceable fixed expenses
Segment margin
Common fixed expenses
Net operating income
Total Company
$ 800,000
560,000
240,000
126,000
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
114,000
54,000
$ 60,000
North
$ 600,000
480,000
120,000
63,000
$ 57,000
South
$ 200,000
80,000
120,000
63,000
$ 57,000
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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