Answer:
BEP Company 425,000
BEP North 200,000
BEP South 100,000
Explanation:
The formula for bEP (break even point)
![\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}](https://tex.z-dn.net/?f=%5Cfrac%7BFixed%5C%3ACost%7D%7BContribution%20%5C%3AMargin%20%5C%3ARatio%7D%20%3D%20Break%5C%3A%20Even%5C%3A%20Point_%7Bdollars%7D)
<u>Where:</u>
![\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio](https://tex.z-dn.net/?f=%5Cfrac%7BContribution%20%5C%3A%20Margin%7D%7BSales%20%5C%3A%20Revenue%7D%20%3D%20Contribution%20%5C%3A%20Margin%20%5C%3A%20Ratio)
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
![\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}](https://tex.z-dn.net/?f=%5Cfrac%7BFixed%5C%3ACost%7D%7BContribution%20%5C%3AMargin%20%5C%3ARatio%7D%20%3D%20Break%5C%3A%20Even%5C%3A%20Point_%7Bdollars%7D)
<u>North </u>60,000/0.3 = 200,000
<u>South</u> 60,000/0.6 = 100, 000
<u>Company for the company we add segment fixed cost and the common fixed cost</u>
segment fixed cost 120, 000
common fixed csot 50, 000
total fixed cost 170, 000
170,000/0.4 = 425,000