Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Total Company $ 750,000 450,000 300,000 144,000 North $ 500,000 350,000 150,000 72,000 South Sales $ 250,000 100,000 Variable expenses Contribution margin Traceable fixed expenses 150,000 72,000 $ 78,000 Segment margin 156,000 $78,000 Common fixed expenses 59,000 Net operating income $ 97,000 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.) 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
Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Total Company $ 750,000 450,000 300,000 144,000 North $ 500,000 350,000 150,000 72,000 South Sales $ 250,000 100,000 Variable expenses Contribution margin Traceable fixed expenses 150,000 72,000 $ 78,000 Segment margin 156,000 $78,000 Common fixed expenses 59,000 Net operating income $ 97,000 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.) 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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7hw-3

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
$ 750,000
450,000
300,000
144,000
North
South
$ 250,000
100,000
150,000
72,000
$ 78,000
Sales
Variable expenses
Contribution margin
Traceable fixed expenses
$ 500,000
350,000
150,000
72,000
$ 78,000
Segment margin
156,000
Common fixed expenses
59,000
Net operating income
$ 97,000
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.)
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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