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8 Crossfire Company segments its business into two regions East and West. The company prepared a contribution format segmented income statement as shown below 3
8 Crossfire Company segments its business into two regions East and West. The company prepared a contribution format segmented income statement as shown below 3 points Total Company $1,020,000 265,000 255,000 156,00 99,00 Sales Variable expenses Contribution margo Teaceable fixed expenses Segment sortin Common Fixed expenses Net operating income Last $ 600,000 544,000 136,000 58,000 $ 78,000 $ 340,000 221,000 119, 98,00 $ 21,00 etbook HA Print $ 34,000 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. Use the same format as shown above. What is Crossfires net operating income foss) in your new segmented income statement 5. Do you think that Crossfire should allocate its common foed 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. Hint Print Reg 1 to 3 Reg 4 Reg 5 References 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 (Round your intermediate calculations to 2 decimal places.) Show less Break.Even Point Dollar sales for the whole company Dollar sales for the East region Dollar sales for the West region Reg 4 > Req 1 to 3 Req 4 Reg 5 its 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? (Round your intermediate calculations to 2 decimal places.) Total Company East West ebook Hint ference 3 points Complete this question by entering your answers in the tabs below. eBook Reg 1 to 3 Reg 4 Reg 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? References Yes NO
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