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it View History Bookmarks Window Help Help Save& Exit Submit hapter 6 Exercises Check my work 5 Pledmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Total s 750,000 500,000 250,000 450,000 50,000 100,000 ints 300,000 150,000 contribution ar in Traceable tined expenses 138,000 -6,000 Segnent nargin Connon fixed expenses 6,000- Set operating income$102,000 162,000 $ 81,000 8,000 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 broak-even point in dollar sales for the South region. (For all requirements, round your intermedlate calculations to 2 decimal places. Round your final answers to the nearest dollar.) company to break-even S 495.000 2. Dolar sales for North segment to break-even Dollar sales for South segment to break-even Prev 5ofsill Next >Explanation / Answer
1
Company the breakeven point in dollar sales
Particulars
$
Traceable Fixed expense
138000
Common Fixed expense
60000
Total fixed expense
198000
PV ratio: contribution/sales
300,000/750,000
0.4
Breakeven point in dollar sales
495000
[Fixed cost/PV ratio]
2
Dollar sales for North sales to break even
Particulars
$
Traceable Fixed expense
69000
PV ratio: contribution/sales
0.3
[150000/500000]
Breakeven point in dollar sales
230000
[Fixed cost/PV ratio]
3
Dollar sales for south sales to break even
Particulars
$
Traceable Fixed expense
69000
PV ratio: contribution/sales
0.6
[150000/250000]
Breakeven point in dollar sales
115000
[Fixed cost/PV ratio]
1
Company the breakeven point in dollar sales
Particulars
$
Traceable Fixed expense
138000
Common Fixed expense
60000
Total fixed expense
198000
PV ratio: contribution/sales
300,000/750,000
0.4
Breakeven point in dollar sales
495000
[Fixed cost/PV ratio]
2
Dollar sales for North sales to break even
Particulars
$
Traceable Fixed expense
69000
PV ratio: contribution/sales
0.3
[150000/500000]
Breakeven point in dollar sales
230000
[Fixed cost/PV ratio]
3
Dollar sales for south sales to break even
Particulars
$
Traceable Fixed expense
69000
PV ratio: contribution/sales
0.6
[150000/250000]
Breakeven point in dollar sales
115000
[Fixed cost/PV ratio]
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