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ID: 2539930 • Letter: I

Question

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]