Total Company North South Sales $ 750,000 $ 500,000 $ 250,000 Variable expenses 450,000 350,000 100,000 Contribution margin 300,000 150,000 150,000 Traceable fixed expenses 138,000 69,000 69,000 Segment margin 162,000 $ 81,000 $ 81,000 Common fixed expenses 60,000 Net operating income $ 102,000 Compute the companywide break-even point in dollar sales. Compute the break-even point in dollar sales for the North region. Compute the break-even point in dollar sales for the South region.

Total Company North South Sales $ 750,000 $ 500,000 $ 250,000 Variable expenses 450,000 350,000 100,000 Contribution margin 300,000 150,000 150,000 Traceable fixed expenses 138,000 69,000 69,000 Segment margin 162,000 $ 81,000 $ 81,000 Common fixed expenses 60,000 Net operating income $ 102,000 Compute the companywide break-even point in dollar sales. Compute the break-even point in dollar sales for the North region. Compute the break-even point in dollar sales for the South region.

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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	Total Company	North	South
Sales	$ 750,000	$ 500,000	$ 250,000
Variable expenses	450,000	350,000	100,000
Contribution margin	300,000	150,000	150,000
Traceable fixed expenses	138,000	69,000	69,000
Segment margin	162,000	$ 81,000	$ 81,000
Common fixed expenses	60,000
Net operating income	$ 102,000

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