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Crossfire company segments its business into two regions- East and West, The company prepared a contribution format segmented income statement as shown below. 1 Compute
Crossfire company segments its business into two regions- East and West, The company prepared a contribution format segmented income statement as shown below.
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. | |||
Given: | Total Company | East | West | |
Sales | $ 9,00,000 | $ 6,00,000 | $ 3,00,000 | |
Variable expenses | 6,75,000 | 4,80,000 | 1,95,000 | |
Contribution margin | 2,25,000 | 1,20,000 | 1,05,000 | |
Traceable fixed expenses | 1,41,000 | 50,000 | 91,000 | |
Segment margin | 84,000 | $ 70,000 | $ 14,000 | |
Common fixed expenses | 59,000 | |||
Net operating income | $ 25,000 |
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