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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 West
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 West 390,000 234,000 156,000 East Sales Variable expenses Contribution margin Traceable fixed expenses148,00064,000 Segment margin Common fixed expenses Net operating income $1,040,000 650,000 442,000 208,000 676,000 364,000 72,000 216,000 144,000 140,000 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. 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? Complete this question by entering your answers in the tabs below Req 4 Req 5 Req 1 to3 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 p Dollar sales for the whole Dollar sales for the East region Dollar sales for the West region
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