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 $ $930,000$ $ $620,000$ $ $310,000$

Variable expenses $744,000514,600229,400$

Contribution margin $186,000105,40080,600$

Traceable fixed expenses $116,00051,00065,000$

Segment margin $70,000$ $ $54,400$ $ $15,600$

Common fixed expenses $62,000$

Net operating income $ $8,000$

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?