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

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Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format segmented income statement as shown below: Total CompanyY East West Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income $1,125,000 750,000 375,000 243,750 131,250 98,000 $ 33,250 843,750 600700 150,0005 281,250 160,000 121,250 50,000 $71,250 62,000 $ 88,000 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. Use the same format as shown above. What is Crossfire's 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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