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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

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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 expenses Contribution margin Traceable fixed expenses Segment nargin Common fixed expenses Total Company 5.945,000 756,000 189,000 East $630,000 West $315,000 529,200 226,800 100,800 88,200 115,000 52,000 63,000 74,000 62,000 $ 48,800 $25,200 $ 12,000 Net operating incone 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. 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Break-Even point Dollar sales for the whole company Dollar sales for the East region 6969 $ 708,000 x $ 530,526 x Dollar sales for the West region $ 226,154 x Req 1 to 3 Req 4 Req 5. Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 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 Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 41 Req 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? Do you think that Crossfire should allocate its common fixed expenses to the East and West regions?

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