Alpesh Exercise 7-5 (Algo) Companywide and Segment Break-Even Analysis [LO7-5]Piedmont Company segments its business into two regions-North and South. The company prepared the contribution formatsegmented income statement as shown:SalesVariable expensesContribution marginTraceable fixed expensesSegment marginCommon fixed expensesNet operating incomeTotal Company$ 937,500637,500300,000152,000148,00064,000$ 84,0001. Dollar sales for company to break-even2. Dollar sales for North segment to break-even3. Dollar sales for South segment to break-evenNorth$750,000600,000150,00076,000$ 74,000South$ 187,50037,500150,00076,000$ 74,000Required: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.(For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.)

Break even point :— It is the point of production where total cost is equal to total revenue. At…

Answered: Exercise 7-5 (Algo) Companywide and…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.16E

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EXERCISE 4-5 Companywide and Segment Break-Even Analysis L04-50 oldahBY S-A321onaxa Piedmont Company segments its business into two regions-North and South. The company pre- pared the contribution format segmented income statement as shown below: kruigmoo c 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 Required: 2. 1. Compute the companywide break-even point in dollar sales. Compute the break-even point in dollar sales for the North region. Compute the break-even point in dollar sales for the South region. 3. North South $400,000 $200,000 280,000 80,000 120,000 120,000 60,000 60,000 $ 60,000 $ 60,000 6MF
Exercise 7-5 (Algo) Companywide and Segment Break-Even Analysis [LO7-5] Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 800,000 560,000 240,000 122,000 118,000 52,000 $ 66,000 1. Dollar sales for company to break-even 2. Dollar sales for North segment to break-even 3. Dollar sales for South segment to break-even North $ 600,000 480,000 120,000 61,000 $ 59,000 < Prev 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. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.) South $ 200,000 ‒‒‒ 2 of 2 www ‒‒‒…
ces Exercise 6-5 (Algo) Companywide and Segment Break-Even Analysis [LO6-5] 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 $ 937,500 Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income 637,500 300,000 152,000 $ 750,000 600,000 150,000 76,000 South $ 187,500 37,500 150,000 76,000 148,000 $ 74,000 $ 74,000 64,000 $ 84,000 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. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.) 1. Dollar sales for company to break even 2. Dollar sales for North segment to break even 3. Dollar sales for South segment to break…
Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Traceable fixed expenses Sales Variable expenses Contribution margin Segment margin Common fixed expenses Net operating income The dollar sales required for the company to break even is closest to: $ 300,000 $ 209,500 Total $ 509,500 120,000 180,000 140,000 260,000 69,500 249,500 100,000 80,000 180,000 $ 80,000 $ (10,500) 69,500 48,000 $ 21,500
Net Income Planning Selected operating data for Oakbrook Company in four independent situations are shown below. Fill in the blanks for each independent situation. Sales Variable expense Fixed expense Net income (loss) before tax Units sold Unit contribution margin Contribution margin ratio $ $ A $350,000 0 a. 0 b. $25,000 30,000 $5.20 $ B 0 C. $ $ $111,000 $62,000 $15,000 0 d. $7.00 C 0 e. 0 f. $ $53,200 $28,800 0.4 D $520,000 0 g. $178,000 $(22,000) 0 h.
Problem 11-19 (Algo) Comparison of Performance Using Return on Investment (ROI) [L011- Comparative data on three companies in the same service industry are given below. Required: 2. Fill in the missing information. (Round the "Turnover" and "ROI" answers to 2 decimal places.) Company A Sales $ 3,910,000 2$ 1,878,000 Net operating income $ 469,200 356,820 Average operating assets Margin $ 1,700,000 $ 2,660,000 4 % Turnover 1.50 Return on investment (ROI) 11.40 %
Companywide and Segment Break-Even Analysis Crossfire Company segments its business into two regions—East and West. The company prepared a contribution format segmented income statement as shown below: Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the East region. 3. Compute the break-even point in dollar sales for the West region. 4. Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 2 and 3. Use the same format as shown above. What is Crossfire’s net operating income (loss) in your new segmented income statement? 5. Do you think that Crossfire should allocate its common fixed expenses to the East and West regions when computing the break-even points for each region? Why?
Question 1 Not yet answered Sales Variable expense Fixed expense Net income (loss) before tax Units sold Unit contribution margin Contribution margin ratio Net Income Planning Selected operating data for Oakbrook Company in four independent situations are shown below. Fill in the blanks for each independent situation. Save Answers $ LA LA Marked out of 7.00 $ A $300,000 $ $20,000- 30,000 $5.20 a. b. Flag question B $91,000 $62,000 $15,000 $7.00 C. $ d. LA $ C $43,200 $28,800 0.4 e. f. $ D $260,000 $89,000 $(11,000) g. h.
Companywide and Segment Break-Even Analysis Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown below: 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 11-9 (Algo) Return on Investment (ROI) and Residual Income Relations [LO11-1, LO11-2] Supply the missing data for three service companies shown in the table below. Note: Loss amounts should be Indicated by a minus sign. Round your percentage answers to nearest whole percent. Sales Net operating income Average operating assets Return on investment (RO Minimum required rate of return. Percentage Dollar amount Residual income A Company B C S 9,240,000 S 7.400.000 S 306,000 $ 4,880.000 S 3,080,000 S 1,944.000 15 % 18 % 96 13 % 96 S 340,000 18 96 $ 97.200
Segment reporting #1 Acme Company has two segments within their organization - Segment A and Segment B Revenue and cost info relating to the segments is below: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Last year the company produced and sold: Segment A Segment B 10.50 5.50 3.50 3.75 30,000 18,000 25,000 30,000 It's annual common fixed expenses are: 75,000 a Prepare a segmented CM IS. b Compute the company wide break even point in dollar sales. c Compute the break even point in dollar sales for Segment A. d Compute the break even point in dollar sales for Segment B.
V. A company’s contribution format income statement for the previous follows: AmountSales P300,000Variable expenses 120,000Contribution margin 180,000Fixed expenses 108,000Net operating income P72,000 Required:a. Compute the company’s degree of operating leverage. b. Using the computed degree of operating leverage, estimate the effect on net operating income of a 5% increase in sales. c. Prepare an income statement using contribution format to verify your answer in (b)

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