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 $ $1,020,000$ $ $680,000$ $ $340,000$

Variable expenses $765,000544,000221,000$

Contribution margin $255,000136,000119,000$

Traceable fixed expenses $156,00058,00098,000$

Segment margin $99,000$ $ $78,000$ $ $21,000$

Common fixed expenses $65,000$

Net operating income $ $34,000$

Required:

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

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

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

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

Do you think Crossfire should allocate its common fixed expenses to the East and West regions when computing the break$-$even points for each region?