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 $ 675,000 405,000 270,000 150,000 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 120,000 65,000 $ 55,000 North $ 450,000 315,000 135,000 75,000 $ 60,000 South $225,000 90,000 135,000 75,000 $ 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. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest de
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 $ 675,000 405,000 270,000 150,000 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 120,000 65,000 $ 55,000 North $ 450,000 315,000 135,000 75,000 $ 60,000 South $225,000 90,000 135,000 75,000 $ 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. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest de
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1.
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
$ 675,000
405,000
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
270,000
150,000
120,000
65,000
$ 55,000
North
$ 450,000
315,000
135,000
75,000
$ 60,000
South
$ 225,000
90,000
135,000
75,000
$ 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.
(For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.)
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