Question

ch 6 exer 6 Piedmont Company segments its business into two regions—North and South. The company...

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  






  Contribution margin 270,000   135,000   135,000  
  Traceable fixed expenses 150,000   75,000   75,000  






  Segment margin 120,000   $ 60,000   $ 60,000  








  Common fixed expenses 65,000  


  Net operating income $ 55,000  




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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