Portland Manufacturing segments its business into two divisions-East and West. The company prepared the following contribution format segmented income statement: Total Company (in $) Sales East $900,000 $600,000 West $300,000 Variable expenses 540,000 420,000 120,000 Contribution margin 360,000 180,000 180,000 Traceable fixed expenses 160,000 80,000 80,000 Segment margin $200,000 $100,000 $100,000 Common fixed expenses 70,000 Net operating income $130,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the East region. 3. Compute the break-even point in dollar sales for the West region.

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Portland manufacturing segments its business into two divisions-East and West.

Portland Manufacturing segments its business into two divisions-East and West. The
company prepared the following contribution format segmented income statement:
Total Company
(in $)
Sales
East
$900,000
$600,000
West
$300,000
Variable expenses
540,000
420,000
120,000
Contribution margin
360,000
180,000
180,000
Traceable fixed expenses
160,000
80,000
80,000
Segment margin
$200,000
$100,000
$100,000
Common fixed expenses
70,000
Net operating income
$130,000
Required:
1. Compute the companywide break-even point in dollar sales.
2. Compute the break-even point in dollar sales for the East region.
3. Compute the break-even point in dollar sales for the West region.
Transcribed Image Text:Portland Manufacturing segments its business into two divisions-East and West. The company prepared the following contribution format segmented income statement: Total Company (in $) Sales East $900,000 $600,000 West $300,000 Variable expenses 540,000 420,000 120,000 Contribution margin 360,000 180,000 180,000 Traceable fixed expenses 160,000 80,000 80,000 Segment margin $200,000 $100,000 $100,000 Common fixed expenses 70,000 Net operating income $130,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the East region. 3. Compute the break-even point in dollar sales for the West region.
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