Homework Answers
a.
This would be the net income in each segment by a subtraction of the aggregate of variable cost and traceable fixed cost from sales figure.
Table of segment margin
|
Heads |
N.A; $ |
E; $ |
|
Variable cost |
350,000 |
500,000 |
|
Traceable fixed cost |
200,000 |
270,000 |
|
Total avoidable cost |
550,000 |
770,000 |
|
Sales |
600,000 |
850,000 |
|
Segment margin |
50,000 |
80,000 |
Answer: E market has the highest segment margin, since $80,000 is higher than $50,000.
b.
This would be a percentage of segment margin on its sales amount.
Segment margin of N.A. in % = (Segment margin / Sales) × 100
= (50,000 / 600,000) × 100
= 8.33 %
Segment margin of E. in % = (Segment margin / Sales) × 100
= (80,000 / 850,000) × 100
= 9.41 %
Answer: E market has the highest segment margin percentage, since 9.41% is higher than 8.33%.
c.
Common fixed cost should not be allocated, since such cost is unavoidable with the discontinuation of these segments; if a segment is discontinued, common fixed cost would still appear with the same amount; therefore, such cost becomes irrelevant.
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APA023 nents based on on prepared by Swelter's Swelter Electronics Company (Swelter) sells its electronic products...
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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 $ 750,000 450,000 300,000 144,000 156,000 59,000 $ 97,000 North $ 500,000 350,000 150,000 72,000 $ 78,000 South $250,000 100,000 150,000 72,000 $ 78,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar...
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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 $ 1,156,250 $ 925,000 $ 231,250 Variable expenses 786,250 740,000 46,250 Contribution margin 370,000 185,000 185,000 Traceable fixed expenses 156,000 78,000 78,000 Segment margin 214,000 $ 107,000 $ 107,000 Common fixed expenses 68,000 Net operating income $ 146,000 Required: Sales $ 1,156,250 $ 925,000 $ 231,250 Variable expenses 786,250 740,000 46,250 Contribution margin 370,000...
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 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...
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...
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 segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $750,000 450,000 300,000 144,000 156,000 59,000 $ 97,000 North $ 500,000 350,000 150,000 72,000 $ 78,000 South $ 250,000 100,000 150,000 72,000 $ 78,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar...
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 $ 750,000 450,000 300,000 144,000 156,000 59,000 $ 97,000 North $ 500,000 350,000 150,000 72,000 $ 78,000 South $250,000 100,000 150,000 72,000 $ 78,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar...
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 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 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...
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 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 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...
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