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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: Sales Variable
Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format segmented income statement as shown below: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Required: Total Company East $ 1,035,000 828,000 207,000 136,000 $ 690,000 579,600 110,400 59,000 West $ 345,000 248,400 96,600 77,000 71,000 $ 51,400 $ 19,600 60,000 $ 11,000 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 you computed in requirements 2 and 3. What is Crossfire's net operating income (loss) in your new segmented income statement? 5. Do you think Crossfire should allocate its common fixed expenses to the East and West regions when computing the break-even points for each region? Complete this question 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. Note: For all requirements, round intermediate calculations to 2 decimal places. Dollar sales for the whole company Dollar sales for the East region Dollar sales for the West region Break-Even point Show less Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Req 5 Prepare a new segmented income statement based on the break-even dollar sales you computed in requirements 2 and 3. What is Crossfire's net operating income (loss) in your new segmented income statement? Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating loss Total Company East West Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Req 5 Do you think 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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