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Crossfire Company segments its business into two regions - east and west. The company prepared a contribution format segment income statement as shown below: 2.5
Crossfire Company segments its business into two regions - east and west. The company prepared a contribution format segment income statement as shown below:
2.5 Connect 10 points eBook Hi1t Print References : Homework 0 Saved Help Sweat Exercise 4-10 [Static] Companywide and Segment Break-Even Analysis [LO4-5] Crossfire Company segments its business into two regionsEast and West. The company prepared a contribution format segmented income statement as shown below: Total Company East West Sales 5; 999,999 $ 699,999 5 399,999 Variable expenses 675,686 436,098 195.6% Contribution margin 225,666 126,666 165,666 Traceable fixed expenses 141,666 56,666 91,660 Segment margin 84,666 $ 79.1999 5 14.13% Common fixed expenses 59,666 Net operating income $ 25:99?! Required: 1. Compute the companywide breakeven point in dollar sales. 2. Compute the brea keven point in dollar sales for the East region. 3. Compute the breakeven point in dollar sales for the West region. 4. Prepare a new segmented income statement based on the brea keven dollar sales that you computed in requirements 2 and 3. Use the same format as shown above. What is Crossre's net operating income [loss] in your new segmented income statement? 5. Do you think that Crossfire should allocate its common xed expenses to the East and 1West regions when computing the brea k even points for each regionStep by Step Solution
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