Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 990,000 660,000 330,000
Variable expenses 742,500 132,000 115,500
contribution margin 247,500 132,000 115,500
traceable fixed expenses 147,000 56,000 91,000
segment margin 100,500 76,000 24,500
common fixed expenses 65,000
net operating income 35,500
Required:
1.

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

2.

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

3.

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

I got $848,000 for the #1 which is correct, but #2 and #3 are not correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions