Crossfire Company segments its business into two regions$-$East and West. The company prepared a contribution format

segmented income statement as shown below:

Required:

Compute the companywide break$-$even point in dollar sales.

Compute the break$-$even point in dollar sales for the East region.

Compute the break$-$even point in dollar sales for the West region.

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?

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? Why?