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 $ 600,000 360,000 240,000 120,000 120,000 50,000 $70,000 North $ 400,000 280,000 120,000 60,000 $ 60,000 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. South $ 200,000 80,000 120,000 60,000 $ 60,000
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 $ 600,000 360,000 240,000 120,000 120,000 50,000 $70,000 North $ 400,000 280,000 120,000 60,000 $ 60,000 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. South $ 200,000 80,000 120,000 60,000 $ 60,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
Sales
Variable expenses
Contribution margin
Traceable fixed expenses
Segment margin
Common fixed expenses
Net operating income
Total Company
$ 600,000
360,000
240,000
120,000
1. Dollar sales for company to break even
2. Dollar sales for North segiñent to break even
3. Dollar sales for South segment to break even
120,000.
50,000
$70,000
North
$ 400,000
280,000
120,000
60,000
$ 60,000
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..
South
$ 200,000
80,000
120,000
60,000
$ 60,000
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