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Compute break-even point in dollar sales for south region

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Reference no: EM132502391

Diedmont 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 $ 812,500 $ 650,000 $ 162,500
Variable expenses 552,500 520,000 32,500
Contribution margin 260,000 130,000 130,000
Traceable fixed expenses 134,000 67,000 67,000
Segment margin 126,000 $ 63,000 $ 53.000
Common fixed expenses 54,000
Net operating income $ 72,000

Required:

Question 1. Compute the companywide break-even point in dollar sales.

Question 2. Compute the break-even point in dollar sales for the North region.

Question 3. Compute the break-even point in dollar sales for the South region.

Reference no: EM132502391

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