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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 Company $1,005,000
Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format segmented income statement as shown below Total Company $1,005,000 East West Salep $670,000 $335,000 Variable 804,000 542,700 261,300 xpenaes Contribution 201,000 127,300 73,700 margin Traceable fixed 112,000 57,000 55,000 xpenaen 70,300 18,700 Segment margin 89,000 Common fixed 56,000 expenses Net operating 33,000 ime 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? 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. (Round intermediate calculations to 2 deecimal places) Show lessA Break-Even point Dollar sales for the whole company Dollar sales for the East region Dollar sales for the West region Req 4 Req 1 to 3
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