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Check my we 2. Crossfire Company segments its business into two regionsEast and West. The company prepared a contribution format segmented income statement as shown
Check my we 2. Crossfire Company segments its business into two regionsEast and West. The company prepared a contribution format segmented income statement as shown below: 10 points Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $1,035,000 828,000 207,000 136,000 71,000 60,000 $ 11,000 East $ 690,000 579,600 110,400 59,000 $ 51,400 West $ 345,000 248,400 96,600 77,000 $ 19,600 eBook Hint Print 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? References
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