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8 Jun 2018
EXERCISE 6-5 Companywide and Segment Break-Even Analysis (L06-5] Piedmont Company segments its business into two regions—North and South. The company pre- pared the contribution format segmented income statement shown below: 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 dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region.
EXERCISE 6-5 Companywide and Segment Break-Even Analysis (L06-5] Piedmont Company segments its business into two regions—North and South. The company pre- pared the contribution format segmented income statement shown below: 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 dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region.
Hubert KochLv2
8 Jun 2018
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Piedmont Company segments its business into two regionsâNorthand South. The company prepared the contribution format segmentedincome statement shown below: |
| Total Company | North | South | ||||
| Sales | $ | 600,000 | $ | 400,000 | $ | 200,000 |
| Variable expenses | 360,000 | 280,000 | 80,000 | |||
| Contributionmargin | 240,000 | 120,000 | 120,000 | |||
| Traceable fixedexpenses | 120,000 | 60,000 | 60,000 | |||
| Segment margin | 120,000 | $ | 60,000 | $ | 60,000 | |
| Common fixedexpenses | 50,000 | |||||
| Net operatingincome | $ | 70,000 | ||||
| Required: |
| 1. | Compute thecompanywide break-even point in dollar sales . |
| 2. | Compute thebreak-even point in dollar sales for the North region. |
| 3. | Compute thebreak-even point in dollar sales for the South region. |
