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Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format...

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Accounting

Piedmont Company segments its business into two regions—Northand South. The company prepared the contribution format segmentedincome statement as shown:

Total CompanyNorthSouth
Sales$825,000$550,000$275,000
Variable expenses495,000385,000110,000
Contribution margin330,000165,000165,000
Traceable fixed expenses144,00072,00072,000
Segment margin186,000$93,000$93,000
Common fixed expenses64,000
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 Northregion.

3. Compute the break-even point in dollar sales for the Southregion.

(For all requirements, round your intermediatecalculations to 2 decimal places. Round your final answers to thenearest dollar.)

Answer & Explanation Solved by verified expert
4.3 Ratings (922 Votes)
Requirement 1 Break even point Company wide Break even point Fixed cost Contribution margin Ratio Contribution margin ratio Sales Variable cost Sales 100 825000 495000 825000    See Answer
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