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 $ $910,000$ $ $650,000$ $ $260,000$

Variable expenses $637,000468,000169,000$

Contribution margin $273,000182,00091,000$

Traceable fixed expenses $133,00070,00063,000$

Segment margin $140,000$ $ $112,000$ $ $28,000$

Common fixed expenses $56,000$

Net operating income $ $84,000$

Required:

$1.$ Compute the companywide break$-$even point in dollar sales.

$2.$ Compute the break$-$even point in dollar sales for the East region.

$3.$ Compute the break$-$even point in dollar sales for the West region.

$4.$ Prepare a new segmented income statement based on the break$-$even dollar sales that you computed in requirements $2$ and $3.$ What is Crossfire$$s net operating income $($loss$)$ in your new segmented income statement?

$5.$ 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?