Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution...
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Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 1,156,250 $ 925,000 $ 231,250 Variable expenses 786,250 740,000 46,250 Contribution margin 370,000 185,000 185,000 Traceable fixed expenses 156,000 78,000 78,000 Segment margin 214,000 $ 107,000 $ 107,000 Common fixed expenses 68,000 Net operating income $ 146,000 Required:
Sales
$
1,156,250
$
925,000
$
231,250
Variable expenses
786,250
740,000
46,250
Contribution margin
370,000
185,000
185,000
Traceable fixed expenses
156,000
78,000
78,000
Segment margin
214,000
$
107,000
$
107,000
Common fixed expenses
68,000
Net operating income
$
146,000
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.
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