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 $ 900,000 630,000 270,000 132,000 138,000 57,000 $ 81,000 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 North $ 675,000 540,000 135,000 66,000 $ 69,000 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 $225,000 90,000 135,000 66,000 $ 69,000 Note: For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
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Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 6PB: Using the information for Lighthizer Trading Company, prepare the income statement to include all...
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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
$ 900,000
630,000
270,000
132,000
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
138,000
57,000
$ 81,000
North
$ 675,000
540,000
135,000
66,000
$ 69,000
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
$ 225,000
90,000
135,000
66,000
$ 69,000
Note: For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest
dollar.
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 $ 900,000 630,000 270,000 132,000 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 138,000 57,000 $ 81,000 North $ 675,000 540,000 135,000 66,000 $ 69,000 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 $ 225,000 90,000 135,000 66,000 $ 69,000 Note: For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.
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