ch 6 exer 6
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 | $ | 675,000 | $ | 450,000 | $ | 225,000 |
Variable expenses | 405,000 | 315,000 | 90,000 | |||
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Contribution margin | 270,000 | 135,000 | 135,000 | |||
Traceable fixed expenses | 150,000 | 75,000 | 75,000 | |||
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Segment margin | 120,000 | $ | 60,000 | $ | 60,000 | |
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Common fixed expenses | 65,000 | |||||
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Net operating income | $ | 55,000 | ||||
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Required: |
a. | Compute the companywide break-even point in dollar sales . |
b. | Compute the break-even point in dollar sales for the North region. |
c. | 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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