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00 AM Wed Jun 24 ezto.mheducation.com Crossfire Company segments its business into two regions-East and West. The company prepared the contribution format segmented income statement
00 AM Wed Jun 24 ezto.mheducation.com Crossfire Company segments its business into two regions-East and West. The company prepared the contribution format segmented income statement shown below: Sales Variable expenses Total Company $ 945,000 756,000 East $630,000 529,200 West $315,000 226,800 Contribution margin Traceable fixed expenses 189,000 115,000 100,800 52,000 88,200 63,000 Segment margin 74,000 $ 48,800 $ 25,200 62,000 Common fixed expenses Net operating income $ 12,000 Required: 1. Compute the companywide break-even point in dollar sales. (Round intermediate calculations to two decimal places) Answer is complete and correct. Break-even point in dollar S 885,000 sales 2. Compute the break-even point in dollar sales for the East region (Round intermediate calculations to two decimal places) Answer is complete but not entirely correct. Break-even point in dollar $ 393,750 sales 3. Compute the break-even point in dollar sales for the West region. (Round intermediate calculations to two decimal places) Answer is complete but not entirely correct. Break-even point in doar $ 185,714 2. Compute the break-even point in dollar sales for the East region (Round intermediate calculations to two decimal places) Answer is complete but not entirely correct. Break-even point in dollar sales $ 393,750 3. Compute the break-even point in dollar sales for the West region (Round intermediate calculations to two decimal places) Answer is complete but not entirely correct. $ 185,714 Break-even point in dollar sales 4. Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 2 and 3. Answer is not complete West Total East Company $ 945,000 X $ 630,000 Sales 315,000 945,000 630,000 315.000 945,000 630,000 315,000 $ 945.000 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
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