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8. value: 2.25 points Crossfire Company segments its business into two regions-East and West. The company prepared the contribution format segmented income statement shown below:
8. value: 2.25 points Crossfire Company segments its business into two regions-East and West. The company prepared the contribution format segmented income statement shown below: Total Company $1,035,000 828,000 Sales Variable expenses East $690,000 579,600 West $345,000 248,400 Contribution margin Traceable fixed expenses 207,000 136,000 110,400 59,000 96,600 77,000 Segment margin 71,000 $ 51,400 $ 19,600 Common fixed expenses 60,000 Net operating income $ 11,000 Required: 1. Compute the companywide break-even point in dollar sales. (Round intermediate calculations to two decimal places.) Break-even point in dollar sales 2. Compute the break-even point in dollar sales for the East region. (Round intermediate calculations to two decimal places.) Break-even point in dollar sales 3. Compute the break-even point in dollar sales for the West region. (Round intermediate calculations to two decimal places.) 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. (Round intermediate calculations to two decimal places.) Total Company East West 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? Yes
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