Answer:
BEP Company 425,000
BEP North 200,000
BEP South 100,000
Explanation:
The formula for bEP (break even point)
[tex]\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}[/tex]
Where:
[tex]\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio[/tex]
We neeed to calculate the Contribution Margin Ratio before starting with the BEP
North CMR 120,000/400,000 = 0.3
South CMR 120,000/200,000 = 0.6
Company 240,000/600,000 = 0.4
Now we calculate the BEP in dollars
[tex]\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}[/tex]
North 60,000/0.3 = 200,000
South 60,000/0.6 = 100, 000
Company for the company we add segment fixed cost and the common fixed cost
segment fixed cost 120, 000
common fixed csot 50, 000
total fixed cost 170, 000
170,000/0.4 = 425,000