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5. Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown:

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

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.

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Answer #1
Total North South
Contribution margin 330000 165000 165000
Divide by Sales 825000 550000 275000
Contribution margin ratio 40.00% 30.00% 60.00%
Break even = Fixed expenses/Contribution margin ratio
1
Dollar sales for company to break-even 520000 =(144000+64000)/40%
2
Dollar sales for North segment to break-even 240000 =72000/30%
3
Dollar sales for South segment to break-even 120000 =72000/60%
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