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Crossfire Company segments its business into two regionsEast and West. The company prepared the contribution format segmented income statement shown below: Total Company East West
Crossfire Company segments its business into two regionsEast and West. The company prepared the contribution format segmented income statement shown below: |
Total Company | East | West | ||||||||||||
Sales | $ | 750,000 | $ | 500,000 | $ | 250,000 | ||||||||
Variable expenses | 525,000 | 375,000 | 150,000 | |||||||||||
Contribution margin | 225,000 | 125,000 | 100,000 | |||||||||||
Traceable fixed expenses | 140,000 | 60,000 | 80,000 | |||||||||||
Segment margin | 85,000 | $ | 65,000 | $ | 20,000 | |||||||||
Common fixed expenses | 70,000 | |||||||||||||
Net operating income | $ | 15,000 | ||||||||||||
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