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

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

Sales $900,000 $600,000 $300,000

Variable 675,000 480,000 195,000 expenses

Contribution 225,000 120,000 105,000 margin

Traceable fixed 141,000 50,000 91,000 expenses

Segment 84,000 margin

Common fixed 59,000 expenses

Net Operating $25,000 income

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Crossfire Company segments its business into two regions - East and West. The company prepared a contribution format segmented income statement as shown below: Sales Variable expenses Contribution margin Total East West Company $900,000 $600,000 $300,000 675,000 480,000 195,000 225,000 120,000 105,000 Traceable fixed 141,000 50,000 91,000 84,000 expenses Segment margin Common fixed expenses Net Operating income 59,000 $25,000 Question 1 Not complete Marked out of 1.00 P Flag question 1. Compute the companywide break- even point in dollar sales. Answer: Check Question 2 Not complete Marked out of 1.00 P Flag question 2. Compute the break-even point in dollar sales for East region. Answer: Check Question 3 Not complete Marked out of 1.00 P Flag question 3. Compute the break-even point in dollar sales for West region. Answer: Check Question 4 Not yet answered Marked out of 1.00 P Flag question 4. Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirement 2 and 3. Use the same format shown above. Question 5 Not complete Marked out of 1.00 P Flag question East region contribution margin Answer: Check Question 6 Not complete Marked out of 1.00 P Flag question West region contribution margin Answer: Check Question 7 Not complete Marked out of 1.00 P Flag question What is Crossfire's net operating income (loss) in your new segmented income statement? Answer: Check Information P Flag question INFORMATION: A company should not allocate its common fixed expenses to business segments. These costs are not traceable to individual segments and will not be affected by segment-level decisions

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