FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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am. 26.

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
$ 750,000
450,000
300,000
144,000
156,000
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
59,000
$ 97,000
North
$ 500,000
350,000
150,000
72,000
$ 78,000
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.
South
$ 250,000
100,000
150,000
72,000
$ 78,000
Note: For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest
dollar.
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Transcribed Image Text: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 $ 750,000 450,000 300,000 144,000 156,000 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 59,000 $ 97,000 North $ 500,000 350,000 150,000 72,000 $ 78,000 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. South $ 250,000 100,000 150,000 72,000 $ 78,000 Note: For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.
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