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Crossfire Company segments its business into two regions East and West. The company prepared the contribution format segmented income statement shown below: Sales Variable expenses

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Crossfire Company segments its business into two regions East and West. The company prepared the contribution format segmented income statement shown below: Sales Variable expenses Total Company $ 1,080,000 810,000 East $780,000 624,000 West $300,000 186,000 Contribution margin Traceable fixed expenses 270,000 161,000 156,000 66,000 114,000 95,000 Segment margin 109,000 $90,000 $ 19,000 Common fixed expenses 78,000 Net operating income $ 31,000 Required: 1. Compute the companywide break-even point in dollar sales. (Round intermediate calculations to two decimal places.) Answer is complete and correct. sk-even point in dollar $ 956,000 2. Compute the break-even point in dollar sales for the East region. (Round intermediate calculations to two decimal places.) Answer is complete and correct. Break-even point in dollar sales $ 330,000 3. Compute the break-even point in dollar sales for the West region. (Round intermediate calculations to two decimal places.) Answer is complete and correct. Break-even point in dollar sales $ 250,000 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.) Answer is complete but not entirely correct. West Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating loss Total East Company $ 956,000 $ 330,000 717,000 264,000 239,000 66,000 161,000 66,000 78,000 . 0 78,000 Ibilbide o 250.000 155,000 95,000 95,000 0

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