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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 margin Common fixed expenses Net operating income: Required: Total Company $960,000 West $ 320,000 192,000 128,000 89,000 East $640,000 672,000 288,000 480,000 160,000 158,000 69,000 130,000 $91,000 $ 39,000 70,000 $ 60,000 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 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? Complete this question by entering your answers in the tabs below. 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 decimal places) Dollar sales for the whole company Dollar sales for the East region Break-Even point Dollar sales for the West region Show less A 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 that 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 that Crossfire should allocate its common fixed expenses to the East and West regions when computing the break-even points for each region? OYes ONO < Req 4 Reg 5 y

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