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 $ 825,000 495,000 330,000 144,000 186,000 64,000 $ 122,000 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 $ 550,000 385,000 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. 165,000 72,000 $ 93,000 $ $ $ Note: For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar. South $ 275,000 110,000 165,000 72,000 $ 93,000 5,200 x 2,400 X 1,200 x
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 $ 825,000 495,000 330,000 144,000 186,000 64,000 $ 122,000 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 $ 550,000 385,000 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. 165,000 72,000 $ 93,000 $ $ $ Note: For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar. South $ 275,000 110,000 165,000 72,000 $ 93,000 5,200 x 2,400 X 1,200 x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![**Piedmont Company Segmented Income Statement**
Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown:
| | Total Company | North | South |
|------------------------------|---------------|---------|---------|
| Sales | $825,000 | $550,000| $275,000|
| Variable expenses | 495,000 | 385,000 | 110,000 |
| Contribution margin | 330,000 | 165,000 | 165,000 |
| Traceable fixed expenses | 144,000 | 72,000 | 72,000 |
| Segment margin | 186,000 | $93,000 | $93,000 |
| Common fixed expenses | 64,000 | | |
| Net operating income | $122,000 | | |
**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.
**Note:** For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.
**Break-even Solutions:**
| Description | Amount |
|--------------------------------------------|-----------|
| 1. Dollar sales for company to break even | $5,200 ✘ |
| 2. Dollar sales for North segment to break even | $2,400 ✘ |
| 3. Dollar sales for South segment to break even | $1,200 ✘ |
The table incorrectly shows intended break-even points. Please ensure calculations are correctly rounded and verified as per stated requirements.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffaf78b86-5cff-4f43-a30f-ea8852193163%2Ff7a362ee-2e88-4ca1-a9f9-9c6718d76178%2Fdv5our8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Piedmont Company Segmented Income Statement**
Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown:
| | Total Company | North | South |
|------------------------------|---------------|---------|---------|
| Sales | $825,000 | $550,000| $275,000|
| Variable expenses | 495,000 | 385,000 | 110,000 |
| Contribution margin | 330,000 | 165,000 | 165,000 |
| Traceable fixed expenses | 144,000 | 72,000 | 72,000 |
| Segment margin | 186,000 | $93,000 | $93,000 |
| Common fixed expenses | 64,000 | | |
| Net operating income | $122,000 | | |
**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.
**Note:** For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.
**Break-even Solutions:**
| Description | Amount |
|--------------------------------------------|-----------|
| 1. Dollar sales for company to break even | $5,200 ✘ |
| 2. Dollar sales for North segment to break even | $2,400 ✘ |
| 3. Dollar sales for South segment to break even | $1,200 ✘ |
The table incorrectly shows intended break-even points. Please ensure calculations are correctly rounded and verified as per stated requirements.
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