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 Total Company $ 600,000 360,000 240,000 120,000 120,000 50,000 $ 70,000 North $ 400,000 280,000 South $ 200,000 120,000 60,000 $ 60,000 80,000 120,000 60,000 $ 60,000 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. Answer is complete but not entirely correct. 1. Dollar sales for company to break even $ 140,000 2. Dollar sales for North segment to break even $335,000 3. Dollar sales for South segment to break even $ 83,750x
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 Total Company $ 600,000 360,000 240,000 120,000 120,000 50,000 $ 70,000 North $ 400,000 280,000 South $ 200,000 120,000 60,000 $ 60,000 80,000 120,000 60,000 $ 60,000 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. Answer is complete but not entirely correct. 1. Dollar sales for company to break even $ 140,000 2. Dollar sales for North segment to break even $335,000 3. Dollar sales for South segment to break even $ 83,750x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vishnu
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
240,000
120,000
Total Company
$ 600,000
360,000
North
$ 400,000
South
$ 200,000
280,000
80,000
120,000
60,000
120,000
60,000
120,000
$ 60,000
$ 60,000
50,000
$ 70,000
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.
Answer is complete but not entirely correct.
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
$ 140,000 ×
$335,000 ×
$
83,750X
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