Contribution margin ratio = contribution /sales
North :120000/600000 = .20 or 20%
south :120000/200000= .60 or 60%
weight of north : 600000/800000= .75 or 75% [sales of north /total sales]
weight of south : 200000/800000= .25 or 25%
weighted average contribution margin ratio : [20*.75]+[60*.25]
= 15+ 15
= 30%
Total fixed cost : 122000+52000= 174000
a)BEP for a company as a whole : fixed cost /weighted average contribution margin ratio
= 174000/ .30
= $ 580000
2)BEP(north ) = segment fixed cost /contribution margin ratio
= 61000/.20
= $ 305000
3)BEP (south) =61000 /.60
= $ 101667
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 (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 (L07-5) 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 Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income North $750,000 600,000 150,000 76,000 $ 74,000 South $ 187,500 37,500 150,000 76,000 $ 74,000 148,000 64,000 $ 84,000 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...
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 shown below: Total Company North South Sales $ 600,000 $ 400,000 $ 200,000 Variable expenses 360,000 280,000 80,000 Contribution margin 240,000 120,000 120,000 Traceable fixed expenses 132,000 66,000 66,000 Segment margin 108,000 $ 54,000 $ 54,000 Common fixed expenses 56,000 Net operating income $ 52,000 Required: 1. Compute the companywide break-even point in dollar sales . 2. Compute the...
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...
Chapter 6 Exercises i Saved Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: points North $550,000 385,000 South $275,000 110,000 eBook 165,000 165,000 Hint Total Company Sales $825,000 Variable 495,000 expenses Contribution 330,000 margin Traceable fixed 144,000 expenses Segment 186,000 margin Common fixed 64.000 expenses Net $ 122,000 income 72,000 72,000 $ 93,000 $ 93,000 Print References Required: 1. Compute the companywide break-even point in dollar sales....
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 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 segmented income statement as shown: Total Company North South Sales $ 825,000 $ 550,000 $ 275,000 Variable expenses 495,000 385,000 110,000 Contribution margin 330,000 165,000 165,000 Traceable fixed expenses 144,000 72,000 72,000 Segment margin 186,000 $ 93,000 $ 93,000 Common fixed expenses 64,000 Net operating income $ 122,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in...