Crossfire Company segments its business into two regionsEast and West. The company prepared the contribution format segmented income statement shown below:

		Total Company		East		West
Sales	$	900,000	$	600,000	$	300,000
Variable expenses		675,000		480,000		195,000
Contribution margin		225,000		120,000		105,000
Traceable fixed expenses		141,000		50,000		91,000
Segment margin		84,000	$	70,000	$	14,000
Common fixed expenses		59,000
Net operating income	$	25,000

Required:

1. Compute the companywide break-even point in dollar sales. (Round intermediate calculations to 2 decimal places.)

2. Compute the break-even point in dollar sales for the East region. (Round intermediate calculations to 2 decimal places.)

3. Compute the break-even point in dollar sales for the West region. (Round intermediate calculations to 2 decimal places.)

4. Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 2 and 3.

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?

	Yes
	No