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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

1.

Compute the companywide break-even point in dollar sales. (Round intermediate calculations to two decimal places.)

2.

Compute the break-even point in dollar sales for the East region. (Round intermediate calculations to two decimal places.)

3.

Compute the break-even point in dollar sales for the West region. (Round intermediate calculations to two decimal places.)

4. Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 2 and 3. (Round intermediate calculations to two decimal places.)

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