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

	Total Company			East			West
Sales	$	960,000		$	640,000		$	320,000
Variable expenses		768,000			537,600			230,400
Contribution margin		192,000			102,400			89,600
Traceable fixed expenses		117,000			54,000			63,000
Segment margin		75,000		$	48,400		$	26,600
Common fixed expenses		55,000
Net operating income	$	20,000

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 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?