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Crossfire Company segments its business into two regionsEast and West. The company prepared a contribution format segmented income statement as shown below: Total Company East

Crossfire Company segments its business into two regionsEast and West. The company prepared a contribution format segmented income statement as shown below:

Total Company East West
Sales $ 945,000 $ 630,000 $ 315,000
Variable expenses 756,000 529,200 226,800
Contribution margin 189,000 100,800 88,200
Traceable fixed expenses 115,000 52,000 63,000
Segment margin 74,000 $ 48,800 $ 25,200
Common fixed expenses 62,000
Net operating income $ 12,000

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 Crossfires 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?

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Please fill the tables

1. Compute the companywide break-even point in dollar 2. Compute the break-even point in dollar sales for the 3. Compute the break-even point in dollar sales for the W (Round intermediate calculations to 2 decimal places)

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