Question

Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format...

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 $ 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 $ 63,000
Common fixed expenses 54,000
Net operating income $ 72,000

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.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

1. Company wide, Break Even point in dollar sales.

​​​​​​For whole company,

Total fixed costs

= traceable fixed expenses+common fixed expenses = $134000+$54000 = $188000.

Contribution margin ratio

= (contribution margin ÷ sales)×100% = ($260000÷812500)×100 = 32%

BREAK EVEN POINT ( IN $ )

= TOTAL FIXED COSTS ÷ CONTRIBUTION MARGIN RATIO

= $188000 ÷ 32%

= $587500.

2. North Region, Break even point in dollar sales.

For north region,

fixed costs = $67000

Contribution margin ratio

= (Contribution margin ÷ sales )×100 = ($130000 ÷ $650000)×100 = 20%

BREAK EVEN POINT ( IN $ )

= $67000 ÷ 20%

= $335000.

3. South Region, Break even point in dollar sales

For south region,

fixed costs = $67000

Contribution margin ratio

= (Contribution margin ÷ sales)×100 = ($130000÷$162500)×100 = 80%

BREAK EVEN POINT ( IN $ )

= $67000 ÷ 80%

= $83750.

_____×_____

ALL THE BEST

Keep Learning

Add a comment
Know the answer?
Add Answer to:
Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Please help ASAP! Thank you! Piedmont Company segments its business into two regions-North and South. The...

    Please help ASAP! Thank you! Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Total Company 812,500 North South Sales 650,000 162,500 Variable expenses 552,500 260,000 134,000 520,000 32,500 Contribution margin Traceable fixed expenses 130,000 67,000 130,000 67,000 s 63,000 Segment margin 63,000 126,000 Common fixed expenses 54,000 $ 72,000 Net operating income Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point...

  • Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format...

    Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 600,000 360,000 240,000 120,000 120,000 50,000 $ 70,000 North $ 400,000 280,000 120,000 60,000 $ 60,000 South $ 200,000 80,000 120,000 60,000 $ 60,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in...

  • Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format...

    Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 600,000 360,000 240,000 120,000 120,000 50,000 $ 70,000 North $ 400,000 280,000 120,000 60,000 $ 60,000 South $ 200,000 80,000 120,000 60,000 $ 60,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in...

  • Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format...

    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 $ 600,000 $ 400,000   $ 200,000     Variable expenses 360,000   280,000   80,000     Contribution margin 240,000   120,000   120,000     Traceable fixed expenses 132,000   66,000   66,000     Segment margin 108,000   $ 54,000   $ 54,000     Common fixed expenses 56,000     Net operating income $ 52,000   Required: 1. Compute the companywide break-even point in dollar sales .                2. Compute the...

  • Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format...

    Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: North $925,000 740,000 185,000 78,000 $ 107,000 Total Company Sales $1,156,250 Variable expenses 786,250 Contribution margin 370,000 Traceable fixed expenses 156,000 Segment margin 214,000 Common fixed expenses 68,000 Net operating income $ 146,000 South $231,250 46,250 185,000 78,000 $ 107,000 OOK Print ferences Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in...

  • 5. Piedmont Company segments its business into two regions—North and South. The company prepared the contribution...

    5. Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown: Compute the companywide break-even point in dollar sales. Compute the break-even point in dollar sales for the North region. Compute the break-even point in dollar sales for the South region. Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed...

  • Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format...

    Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 937,500 637.500 300,000 142,000 158,000 62,000 $ 96,000 North $ 750,000 600,000 150,000 71,000 $ 79,000 South $ 187,500 37,500 150,000 71,000 $ 79,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in...

  • Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format...

    Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 937,500 637,500 300,000 152,000 148,000 64,000 $ 84,000 North $ 750,000 600,000 150,000 76,000 $ 74,000 South $ 187,500 37,500 150,000 76,000 $ 74,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in...

  • Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format...

    Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Total Company $ 937,500 637,500 300,000 142,000 Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income North $750,000 600,000 150,000 71,000 $ 79,000 South $ 187,500 37,500 150,000 71,000 $ 79,000 62,000 $ 96,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales...

  • Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format...

    Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 937,500 637,500 300,000 152,000 148,000 64,000 $ 84,000 North $750,000 600,000 150,000 76,000 $ 74,000 South $ 187,500 37,500 150,000 76,000 $ 74,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT