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Homework answers / question archive / Piedmont Company segments its business into two regions—North and South

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

Accounting

Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement shown below: 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 144,000 72,000 72,000 Segment margin 156,000 $ 78,000 $ 78,000 Common fixed expenses 59,000 Net operating income $ 97,000 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. (Round your break-even dollar sales to the nearest whole number.)

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