Piedmont Company segments its business into two regions-North and South. The company prepared the contribution formatsegmented income statement as shown:SalesVariable expensesContribution marginTraceable fixed expensesSegment marginCommon fixed expensesNet operating incomeTotal Company$ 900,000630,000270,000132,0001. Dollar sales for company to break even2 Dollar sales for North segment to break even3. Dollar sales for South segment to break even138,00057,000$ 81,000North$ 675,000540,000135,00066,000$ 69,000Required: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$ 225,00090,000135,00066,000$ 69,000Note: For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearestdollar.

The break-even point is the level of sales at which total revenue equals total costs, resulting in…

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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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REQUIRED: How much is the company's overall income?
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The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Perez Munoz Number of customers (a) 81 81 Sales revenue (a × $250) $ 20,250 $ 20,250 Variable cost (a × $175) N/A (14,175 ) Variable cost (a × $0) 0 N/A Contribution margin 20,250 6,075 Fixed cost (14,175 ) 0 Net income $ 6,075 $ 6,075 Required Reconstruct Perez’s income statement, assuming that it serves 162 customers when it lures 81 customers away from Munoz by lowering the sales price to $150 per customer. Reconstruct Munoz’s income statement, assuming that it serves 162 customers when it lures 81 customers away from Perez by lowering the sales price to $150 per customer.
Gough Corporation has two divisions. Domestic and Foreign. Data from the most recent month appears below: 6. Total Company $668,000 Domestic Foreign $321,000 147,660 173,340 134,000 $ 39,340 Sales... Variable expenses. Contribution margin. Traceable fixed expenses. 220,530 447,470 335,000 112,470 $347,000 72,870 274,130 201,000 $ 73,130 Segment margin.. Common fixed expenses.. 73,480 $ 38,990 Net operating income.. The break-even in sales dollars for the company as a whole is closest to: A. $502,579 B. $107,216 C. $436,424 D. $609,794
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Severo S.A. of Sao Paulo, Brazil, is organized into two divisions. The company's contribution format segmented income statement (in terms of the Brazilian currency, the real, R) for last month is given below: Sales Variable expenses Contribution margin Traceable fixed expenses: Advertising Selling and administrative Depreciation Total traceable fixed expenses Divisional segment margin Common fixed expenses Operating income Sales Traceable fixed expenses: Total Company R 3,675,000 1,745,500 1,929,500 Traceable fixed expenses: R Advertising Selling and administrative Depreciation Variable expenses as a percentage of sales Total traceable fixed expenses 634,000 449,000 233,000 1,316,000 Common fixed expenses: Top management can't understand why the Leather Division has such a low segment margin when its sales are only 25% less than sales in the Cloth Division. As one step in isolating the problem, management has directed that the Leather Division be further segmented into product lines.…
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