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4 Crossfire Company segments its business into two regions--East and West. The company prepared a contribution format segmented income statement as shown below: 4 Sales

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4 Crossfire Company segments its business into two regions--East and West. The company prepared a contribution format segmented income statement as shown below: 4 Sales Variable expenses Contribution margin Traceable fixed expenses Segnant nargis Como tired et operating in Total Company 910.000 699.000 273,000 133,000 160.000 36.000 04.000 Tas 650.000 468.000 142.000 70.000 $112.000 260,000 165,000 99,000 63,000 $ 20,000 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.evon dollar sales that you computed in requirements 2 and 3 What is Crossfire's net operating income foss) 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? 10 Complete this question by entering your answers in the tabs below. Res 1 to 3 Reg Rees 1. Compute the companywide break even point in dollar sales 2. Coroute the break-even point in dolar sales for the East region 1. Compute the break even point in dollar sales for the West region undermediate clations to 2 decimal places) Show less Break Even paint Dola torre whole company the stagion Graded Homework Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income 637.000 273,000 133,000 140.000 56,000 $ 84,000 468,000 182,000 70,000 $ 112,000 AUFVV 169,000 91,000 63,000 $ 28,000 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. 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? Complete this question by entering your answers in the tabs below. Reg 1 to 3 Reg4 Reas Prepare a new segmented Income statement based on the break-even dollar sales that you computed in requirements 2 and 3. What is Crossfire's net operating income (loss) in your new segmented income statement? Total Company East West Sales Vrees Product line segment margin Common federace to products Net operating Saved hapter 6 Graded Homework 4 Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Het operating Income Company $ 910,000 637.000 273,000 133.000 140.000 56,000 $ 84.000 East $ 650,000 468,000 182,000 70,000 $ 112,000 west $ 260,000 169,000 91.000 63.000 $ 28,000 Door 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. What is Crossfire's net operating income foss) 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? AR Complete this question by entering your answers in the tabs below. lo Reg 1 to 3 Reg Regs Do you think that Crossfire should allocate its common fixed expenses to the fast and West regions when computing the break even points for each region? Yes NO

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