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	$	915,000	$	610,000	$	305,000
Variable expenses		732,000		518,500		213,500
Contribution margin		183,000		91,500		91,500
Traceable fixed expenses		111,000		51,000		60,000
Segment margin		72,000	$	40,500	$	31,500
Common fixed expenses		60,000
Net operating income	$	12,000

Required:

1.	Compute the companywide break-even point in dollar sales. (Round intermediate calculations to two decimal places.)

2.	Compute the break-even point in dollar sales for the East region. (Round intermediate calculations to two decimal places.

3.	Compute the break-even point in dollar sales for the West region. (Round intermediate calculations to two decimal places.)

4.	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.)

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