Piedmont Company segments its business into two regions - North and South. The company prepared the contribution format segmented income statement shown below:
Total Company North South
Sales $750,000 $600,000 $150,000
Variable expenses $510,000 $480,000 $30,000
Contribution margin $240,000 $120,000 $120,000
Traceable fixed expenses $128,000 $64,000 $64,000
Segment margin $112,000 $56,000 $56,000
Common fixed expenses $54,000
Net operating income $58,000
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.