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Exercise 7-5 (Algo) Companywide and Segment Break-Even Analysis (LO7-5] 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 $ 975,000 585,000 390,000 162,000 North $ 650,000 455,000 195,000 81,000 228,000 5 114,000 70,000 $ 158,000 South $325,000 130,000 195,000 81,000 $ 114,000 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. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar)

Exercise 7-5 (Algo) Companywide and Segment Break-Even Analysis (LO7-5] 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 $ 975,000 585,000 390,000 162,000 North $ 650,000 455,000 195,000 81,000 228,000 5 114,000 70,000 $ 158,000 South $325,000 130,000 195,000 81,000 $ 114,000 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. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 7-5 (Algo) Companywide and Segment Break-Even Analysis [LO7-5) 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 $ 975,000 585,000 390,000 162,000 228,000 70,000 $ 158,000 1. Dollar sales for company to break-even 2 Dollar sales for North segment to break even 3. Dollar sales for South segment to break-even South $325,000 130,000 195,000 81,000 $ 114,000 $ 114,000 North $ 650,000 455,000 195,000 81,000 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. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar)
Transcribed Image Text:Exercise 7-5 (Algo) Companywide and Segment Break-Even Analysis [LO7-5) 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 $ 975,000 585,000 390,000 162,000 228,000 70,000 $ 158,000 1. Dollar sales for company to break-even 2 Dollar sales for North segment to break even 3. Dollar sales for South segment to break-even South $325,000 130,000 195,000 81,000 $ 114,000 $ 114,000 North $ 650,000 455,000 195,000 81,000 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. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar)
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