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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 West Sales $ 1,040,000 $ 650,000 $ 390,000 Variable expenses 676,000 442,000 234,000 Contribution margin 364,000 208,000 156,000 Traceable fixed expenses 148,000 64,000 84,000 Segment margin 216,000 $ 144,000 $ 72,000 Common fixed expenses 76,000 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 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? Complete this question by entering your answers in the tabs below. Reg 1 to 3 Reg 4 Reqs 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 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 ROQ 110 Reg 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? Total Company East West Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating loss Reg 1 to 3 Reg 4 Reg 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? Yos ON

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