Exercise 6-5 (Algo) Companywide and Segment Break-Even Analysis (LO6-5] Piedmont Company segments its business into two regions-North and South. The company prepared the contribution segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Connon fixed expenses. Net operating income Total Company $ 1,125,000 765,000 360,000 154,000 $ North 900,000 720,000 180,000 77,000 206,000 $ 103,000 66,000 $ 140,000 South $ 225,000 45,000 180,000 77,000 $ 103,000
Exercise 6-5 (Algo) Companywide and Segment Break-Even Analysis (LO6-5] Piedmont Company segments its business into two regions-North and South. The company prepared the contribution segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Connon fixed expenses. Net operating income Total Company $ 1,125,000 765,000 360,000 154,000 $ North 900,000 720,000 180,000 77,000 206,000 $ 103,000 66,000 $ 140,000 South $ 225,000 45,000 180,000 77,000 $ 103,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Exercise 6-5 (Algo) Companywide and Segment Break-Even Analysis (LO6-5]
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
$ 1,125,000
765,000
360,000
154,000
North
$ 900,000
720,000
180,000
77,000
206,000 $ 103,000
66,000
$ 140,000
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.
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
South
$ 225,000
45,000
180,000
77,000
$ 103,000
(For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest
dollar.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F83b62d92-ae46-4dd3-8277-7ec31e6fe3f8%2Fb7b31b3d-7100-4a87-90a0-bfb52b82eeba%2Fusrq66f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:et
Exercise 6-5 (Algo) Companywide and Segment Break-Even Analysis (LO6-5]
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
$ 1,125,000
765,000
360,000
154,000
North
$ 900,000
720,000
180,000
77,000
206,000 $ 103,000
66,000
$ 140,000
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.
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
South
$ 225,000
45,000
180,000
77,000
$ 103,000
(For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest
dollar.)
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