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Piedmont Company segments its business into two regions—North and South

Accounting Feb 02, 2021

Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 750,000 $ 500,000 $ 250,000 Variable expenses 450,000 350,000 100,000 Contribution margin 300,000 150,000 150,000 Traceable fixed expenses 130,000 69,000 59,000 Segment margin 162,000 $ 81,000 $ 81,000 Carmen fixed expenses 60,000 Net operating income 3 1021000 '— 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. (For all requirements. round your intermediate calculations to 2 decimal places. Round your ?nal answers to the nearest dollar.) a Dollar sales for company to break-even $ 495 000 a Dollar sales for North segment to break— even _ a Dollar sales for South segment to break-even

Expert Solution

Answer:

1 Dollar sales for company to break- even = $ 495,000

2 Dollar sales for North segment to break- even = $ 230,000

3 Dollar sales for south segment to break- even = $ 115,000

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