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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: Total Company East

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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: Total Company East 577,600 63,000 West Sales Variable expenses Contribution margin Traceable fixed expenses $1,140,000 760,000 380, 000 277,400 102,600 81,000 855,000 285,000 144.000 182,400 141,000 119,400 21,600 Segment margin Common fixed expenses 72,000 Net operating income $69,000 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. Use the same format as shown above. 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

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