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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: Total Company $

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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: Total Company $ 990,000 742,500 Sales Variable expenses East $660,000 528,000 West $330,000 214,500 Contribution margin Traceable fixed expenses 247,500 147,000 132,000 56,000 115,500 91,000 Segment margin 100,500 $ 76,000 $ 24,500 65,000 Common fixed expenses Net operating income $ 35,500 Required: 1. Compute the companywide break-even point in dollar sales. (Round intermediate calculations to two decimal places.) Break-even point in dollar sales 2. Compute the break-even point in dollar sales for the East region. (Round intermediate calculations to two decimal places.) Break-even point in dollar sales 3. Compute the break-even point in dollar sales for the West region (Round intermediate calculations to two decimal places.) Break-even point in dollar sales 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.) Total Company East West 0 0 0 0 0 0 0 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? Yes No

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