Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format segmented income statement as shown below: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 750,000 525,000 225,000 140,000 85,000 70,000 $ 15,000 East $ 500,000 375,000 125,000 60,000 $ 65,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the East region. West $ 250,000 150,000 100,000 80,000 $ 20,000 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?

Crossfire Company segments its business into two regions - East and West. The company prepared a contribution format segmented income statement as shown below: 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? 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) \begin{tabular}{|l|l|} \hline Dollar sales for the whole company & Break-Even point \\ \hline Dollar sales for the East region & \\ \hline Dollar sales for the West region & \\ \hline \end{tabular} Req 1 to 3 Req 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? \begin{tabular}{|l|l|l|} \hline Sales \\ \hline Varrable expenses \\ \hline Contribution margin & \\ \hline Traceable foxod expenses \\ \hline Product line segment margin & & \\ \hline Cormmon foxed expenses not traceable to products & & \\ \hline Net operating loss & & \\ \hline \end{tabular} 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