Question: 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 $675,000 $450,000 $225,000
Variable expenses 405,000 315,000 90,000
Contribution margin 270,000 135,000 135,000
Traceable fixed expenses 132,000 66,000 66,000
Segment margin 138,000 $69,000 $69,000
Common fixed expenses 58,000
Net operating income $80,000
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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