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Question
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
$975,000
$650,000
$325,000
Variable expenses
585,000
455,000
130,000
Contribution margin
390,000
195,000
Traceable fixed expenses
162,000
81,000
Segment margin
228,000
$114,000
Common fixed expenses 70,000
Net operating income $158,000
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.
(For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.)
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