Homework Answers
Solution 1:
Overall CM ratio = Contribution margin / Sales = $300,000 / $937,500 = 32%
Company wide break even point in dollar sales = Total fixed costs / Overall CM ratio = ($152,000 + $64,000) / 32% = $675,000
Solution 2:
Contribution margin ratio for north region = Contribution margin / Sales = $150,000 / $750,000 = 20%
Break even point in dollar sales for north region = Fixed costs of north region / CM ratio = $76,000 / 20% = $380,000
Solution 3:
Contribution margin ratio for South region = Contribution margin / Sales = $150,000 / $187,500 = 80%
Break even point in dollar sales for South region = Fixed costs of north region / CM ratio = $76,000 / 80% = $95,000
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Exercise 7-5 Companywide and Segment Break-Even Analysis (L07-5) Piedmont Company segments its business into two regions-North...
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: 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...
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...
Exercise 6-5 Companywide and Segment Break-Even Analysis (L06-5) Piedmont Company segments its business into two regions-North...
Exercise 6-5 Companywide and Segment Break-Even Analysis (L06-5) 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 $ 675,000 405,000 270,000 132,000 138,000 58, Bee $ 80,000 North $450,000 315,000 135,000 66,000 $ 69,000 South $225,000 90.000 135,000 66,000 $69.000 Required: 1. Compute the companywide break-even point in dollar sales....
Exercise 7-5 Companywide and Segment Break-Even Analysis [LO7-5 Piedmont Company segments its business into two reg...
Exercise 7-5 Companywide and Segment Break-Even Analysis [LO7-5 Piedmont Company segments its business into two regions-North and South. The compa segmented income statement as shown: Total Company $600,000 360, 000 240,000 120,000 North $ 400, 000 280,000 120,000 60,000 60,000 South Sales Variable expenses Contribution margin Traceable fixed expenses $200,000 80,00 120,000 60,000 Segment margin Common fixed expenses 120,000 60,000 50,000 $ 70,000 Net operating income Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even...
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...
Exercise 6-5 Companywide and Segment Break-Even Analysis [LO6-5] Piedmont Company segments its business into two regions-North...
Exercise 6-5 Companywide and Segment Break-Even Analysis [LO6-5] Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement shown below: Total CompanyNorth South $800,000 $600,000 $200,000 560,000 480,000 80,000 Sales Variable expenses Contribution margin 240,000120,000 120,000 61,00061,000 Traceable fixed expenses Segment margin Common fixed expenses Net operating income 122,000 18,000 $ 59,000 $ 59,000 2,000 $ 66,000 Required: 1. Compute the companywide break-even point in dollar sales Dollar sales for company...
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 $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 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: 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...
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...
Exercise 6-5 Companywide and Segment Break-Even Analysis (L06-5) 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 $ 675,000 405,000 270,000 132,000 138,000 58, Bee $ 80,000 North $450,000 315,000 135,000 66,000 $ 69,000 South $225,000 90.000 135,000 66,000 $69.000 Required: 1. Compute the companywide break-even point in dollar sales....
Exercise 7-5 Companywide and Segment Break-Even Analysis [LO7-5 Piedmont Company segments its business into two regions-North and South. The compa segmented income statement as shown: Total Company $600,000 360, 000 240,000 120,000 North $ 400, 000 280,000 120,000 60,000 60,000 South Sales Variable expenses Contribution margin Traceable fixed expenses $200,000 80,00 120,000 60,000 Segment margin Common fixed expenses 120,000 60,000 50,000 $ 70,000 Net operating income Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even...
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...
Exercise 6-5 Companywide and Segment Break-Even Analysis [LO6-5] Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement shown below: Total CompanyNorth South $800,000 $600,000 $200,000 560,000 480,000 80,000 Sales Variable expenses Contribution margin 240,000120,000 120,000 61,00061,000 Traceable fixed expenses Segment margin Common fixed expenses Net operating income 122,000 18,000 $ 59,000 $ 59,000 2,000 $ 66,000 Required: 1. Compute the companywide break-even point in dollar sales Dollar sales for company...
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 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...
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