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 $ $1,120,000$ $ $770,000$ $ $350,000$

Variable expenses $840,000616,000224,000$

Contribution margin $280,000154,000126,000$

Traceable fixed expenses $155,00065,00090,000$

Segment margin $125,000$ $ $89,000$ $ $36,000$

Common fixed expenses $70,000$

Net operating income $ $55,000$

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?