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18 Jun 2018
Piedmont Company segments its business into two regionsâNorthand South. The company prepared the contribution format segmentedincome statement shown below:
Total
Company North South Sales $ 600,000 $ 400,000 $ 200,000 Variable expenses 360,000 280,000 80,000 Contributionmargin 240,000 120,000 120,000 Traceable fixedexpenses 132,000 66,000 66,000 Segment margin 108,000 $ 54,000 $ 54,000 Common fixedexpenses 56,000 Net operatingincome $ 52,000
Required:
1. Compute thecompanywide break-even point in dollar sales .
2. Compute thebreak-even point in dollar sales for the North region.
3. Compute thebreak-even point in dollar sales for the South region.(Round your break-even dollar sales to the nearest wholenumber.)
Piedmont Company segments its business into two regionsâNorthand South. The company prepared the contribution format segmentedincome statement shown below: |
| Total Company | North | South | ||||
| Sales | $ | 600,000 | $ | 400,000 | $ | 200,000 |
| Variable expenses | 360,000 | 280,000 | 80,000 | |||
| Contributionmargin | 240,000 | 120,000 | 120,000 | |||
| Traceable fixedexpenses | 132,000 | 66,000 | 66,000 | |||
| Segment margin | 108,000 | $ | 54,000 | $ | 54,000 | |
| Common fixedexpenses | 56,000 | |||||
| Net operatingincome | $ | 52,000 | ||||
| Required: |
| 1. | Compute thecompanywide break-even point in dollar sales . |
| 2. | Compute thebreak-even point in dollar sales for the North region. |
| 3. | Compute thebreak-even point in dollar sales for the South region.(Round your break-even dollar sales to the nearest wholenumber.) |
Lelia LubowitzLv2
20 Jun 2018
