Crossfire Company segments its business into two regionsEast and West. The company prepared a contribution format segmented income statement as shown below:

Total CompanyEastWestSales$ 1,005,000$ 670,000$ 335,000Variable expenses804,000542,700261,300Contribution margin201,000127,30073,700Traceable fixed expenses112,00057,00055,000Segment margin89,000$ 70,300$ 18,700Common fixed expenses56,000 Net operating income$ 33,000

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 Crossfires 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?