Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format segmented

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

Total Company North South $600,000 $400,000 $200,000 360,000 Sales .... Variable expenses 280,000 80,000 Contribution margin . Traceable fixed expenses 120,000 60,000 240,000 120,000 120,000 60,000 Segment margin ... Common fixed expenses 120,000 $ 60,000 $ 60,000 50,000 Net operating income $ 70,000


Required:

1. Compute the companywide break-even point in dollar sales.

2. Compute the break-even point in dollar sales for the North region.

3. Compute the break-even point in dollar sales for the South region.

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Managerial Accounting

ISBN: 9781260247787

17th Edition

Authors: Ray Garrison, Eric Noreen, Peter Brewer

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