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Compute the companywide break-even point in dollar sales

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Problem - 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 $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 132,000 66,000 66,000

Segment margin 138,000 $69,000 $69,000

Common fixed expenses 58,000

Net operating income $80,000

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.

Reference no: EM132453812

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