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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 | $910,000 | $650,000 | $260,000 |
Variable Expenses | 637,000 | 468,000 | 169,000 |
Contribution Margin | 273,000 | 182,000 | 91,000 |
Traceable Fixed Expenses | 133,000 | 70,000 | 63,000 |
Segment Margin | 140,000 | $112,000 | $28,000 |
Common Fixed Expenses | 56,000 | ||
Net Operating Income | $84,000 |
1. Compute the companywide break-even point in dollar sales. (Round intermediate calculations to two decimal places.)
$622,000 is NOT correct.
2. 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.)
So far I have this:
Total Company | East | West | |
Sales | $430,000 | 250,000 | 180,000 |
Variable Expenses | 297,000 | 180,000 | 117,000 |
Contribution Margin | 133,000 | 70,000 | 63,000 |
133,000 | 70,000 | 63,000 | |
133,000 |
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