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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

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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 sangin Traceable fixed expenses Segment margin Common fixed expenses Het operating income Total Company $ 975,000 731,250 243,750 139,000 184,750 73, 31,750 Fast 650,000 520,000 130,000 55,000 75,000 wost $325,000 211,250 113.750 R4,000 $ 29,750 $ 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 doller sales that you computed in requirements 2 and 3 What is Crossfire's net operating income (oss) 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

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