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 $ 1,125,000 $ 750,000 $ 375,000

Variable expenses 843,750 600,000 243,750

Contribution margin 281,250 150,000 131,250

Traceable fixed expenses 160,000 62,000 98,000

Segment margin 121,250 $ 88,000 $ 33,250

Common fixed expenses 50,000

Net operating income $ 71,250

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. Use the same format as shown above. 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?

even points for each region? Complete this questlon by entering your answers In the tabs below. Req 1 to 3 Req 4 Req 5 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. (Round your Intermediate calculations to 2 decimal places.) Show less A Break-Even Point Dollar sales for the whole company Dollar sales for the East region Dollar sales for the West region Req 4> Prev 2 of 2 Next