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Chapter 6 Exercises i Saved Piedmont Company segments its business into two regions-North and South. The company prepared the

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Answer #1

Break Even Point = Fixed Cost/Contribution Margin

Whereas, Contribution Margin = Contribution / Sales

Calculation of Dollar sales to break even is calculated as below:

1. For Company

Contribution Margin = ($330000 / $8250000) * 100

= 40%

Break Even Point = ($144000 + $64000) / 30%

=$520000

2. For North Segment

Contribution Margin = ($165000 / $550000) * 100

= 30%

Break Even Point = $72000 / 30%

= $240000

3. For South Segment

Contribution Margin = ($165000 / $275000) * 100

= 60%

Break Even Point = $72000 / 60%

=$120000

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