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 Total Company $1,005,000 804,080 201,000 112,000 89,000 56,000 $ 33,000 East $ 670,000 542,700 127,380 57.000 $ 70,300 West $ 335,000 261 300 73,700 55,000 $ 18,700 Required: 1. Compute the companywide break-even point in dotter 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 doller soles that you compuled in requirements 2 and 3. 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. Reg 1 to 3 Reg 4 Reg 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 decimal places) West region. 4. Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 2 a 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 bu even points for each region? Complete this question by entering your answers in the tabs below. Req 1 to 3 Reg 4 Reqs 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 decimal places) Show less Break Elven point Dollar sales for the whole company Dollar sales for the East region Dollar sales for the West region Req> 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 require 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 comp even points for each region? Complete this question by entering your answers in the tabs below. Reg 1 to 3 Reg 4 Reg 5 cos Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 2 a 3. What is Crossfire's net operating Income (loss) in your new segmented income statement? Total Company East West Sales Variable expenses Contribution margin 0 0 0 Traceable fixed expenses Product line segment margin 0 0 Common fixed expenses not traceable to products Net operating loss Haqitea Regu Net operating income 33,000 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 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 even points for each region? Complete this question by entering your answers in the tabs below. Reg 1 to 3 Reg 4 Reg 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? Yes NO
