Question

Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segment
Total Company Sales $1,156,250 Variable expenses 786,250 Contribution margin 370,000 Traceable fixed expenses 156,000 Segment
0 0
Add a comment Improve this question Transcribed image text
Answer #1

1. The companywide break-even point is computed as follows:

Dollar sales for company to break even = (Traceable fixed expenses + Common fixed expenses) / Overall CM ratio

= ($156,000 + $68,000) / 0.32

= $700,000

2. The break-even point for the North region is computed as follows:

Dollar sales for a segment to break even = Segment traceable fixed expenses / Segment CM ratio

= $78,000 / 0.20

= $390,000

3. The break-even point for the South region is computed as follows:

Dollar sales for a segment to break even = Segment traceable fixed expenses / Segment CM ratio

= $78,000 / 0.80

= $97,500

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
  • 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 $ 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: Total Company $ 1,156,250 786,250 370,000 North $925,000 740, eee 185,000 South $231,250 46,250 185,eee 156,000 78,eee Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income 78, eee $107,600 $107, eee 214, eee 68,000 $ 146,000 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 $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 s...

    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...

    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: 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