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 $ 937,500 637,500 300,000 146,000 154,000 64,000 $ 90,000 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 $750,000 600,000 150,000 73,000 $ 77,000 South $ 187,500 37,500 150,000 73,000 $ 77,000
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 $ 937,500 637,500 300,000 146,000 154,000 64,000 $ 90,000 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 $750,000 600,000 150,000 73,000 $ 77,000 South $ 187,500 37,500 150,000 73,000 $ 77,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Munabhai
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
$ 937,500
637,500
300,000
146,000
154,000
64,000
$ 90,000
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
$ 750,000
600,000
150,000
73,000
$ 77,000
South
$ 187,500
37,500
150,000
73,000
$ 77,000
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