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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 margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 1,040,000 676,000 364,000 148,000 216,000 76,000 $ 140,000 East $ 650,000 442,00 208,000 64,000 $ 144,000 West $ 390,000 234,000 156,000 84,000 5.72,000 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 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? 5 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) Show less Break Even point Dollar sales for the whole company Dollar sales for the East region Dollar sales for the West region Rou Reg 4 > Net operating income $ 140,000 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 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 to even points for each region? Complete this question by entering your answers in the tabs below. Reg 1 to 3 Reg 4 Reg 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? Total Company East West Sales Variable expenses Contribution margin Traceable foxed expenses Product line segment margin Common fixed expenses not traceable to products Net operating loss

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