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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: 050 Total Company
Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format segmented Income statement as shown below: 050 Total Company East Sales variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income 756.ee 189, 115, 74,000 62,8e 630,000 529, 2ee 100, see 52,eee 48. west $315.ee 226, see 83.2ee 63,eee $ 25.200 $ 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. Use the same format as shown above. What is Crossfire's net operating Income (loss) in your new segmented Income statement? . 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. Reg 1 to 3 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 Break-Even point Dollar sales for the whole company Dollar sales for the East region Dollar sales for the West region - Realtos Reg 4 > Complete this question by entering your answers in the tabs below. Req 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. Use the same format as shown above. What is Crossfire's net operating income (loss) in your new segmented income statement? Total Company East West
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