Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Total North South $ 187,500 37,500 Company Sales $ 937,500 $ 750,000 600,000 Variable expenses Contribution margin Traceable fixed expenses 637,500 150,000 71,000 $ 79,000 150,000 71,000 $ 79,000 300,000 142,000 Segment margin 158,000 Common fixed expenses 62,000 Net operating income $ 96,000 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: Total North South $ 187,500 37,500 Company Sales $ 937,500 $ 750,000 600,000 Variable expenses Contribution margin Traceable fixed expenses 637,500 150,000 71,000 $ 79,000 150,000 71,000 $ 79,000 300,000 142,000 Segment margin 158,000 Common fixed expenses 62,000 Net operating income $ 96,000 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:
Total
North
South
Company
$ 937,500
637,500
$ 750,000
$ 187,500
37,500
150,000
71,000
$ 79,000
Sales
600,000
Variable expenses
Contribution margin
Traceable fixed expenses
300,000
142,000
150,000
71,000
Segment margin
158,000
$ 79,000
62,000
$ 96,000
Common fixed expenses
Net operating income
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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