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n7 Graded Homework Ch 7 Graded Help Save&ExinSubr 5 Pledmont Company segments its business into two regions-North and South.
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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

= ($146,000 + $64,000) / 0.32

= $656,250

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

= $73,000 / 0.20

= $365,000

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

= $73,000 / 0.80

= $91,250

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