Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution...
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Accounting
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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