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Crossfire Company segments its business into two regionsEast and West. The company prepared the contribution format segmented income statement shown below: Total East $ 930,000
Crossfire Company segments its business into two regionsEast and West. The company prepared the contribution format segmented income statement shown below:
Total East $ 930,000 $620,000 $310,000 Company West Sales Variable expenses 744,000 514,600 229,400 Contribution margin 80.600 65.000 186.000 105.400 116,000 70,000 $ 54,400 $ 15,600 62,000 51000 Traceable fixed expenses Segment margin Common fixed expenses operating income $ 8,000 Required 1. Compute the companywide break-even point in dollar sales. (Round intermediate calculations to two decimal places) Break-even point in dollar sales 2. Compute the break-even point in dollar sales for the East region. (Round intermediate calculations to two decimal places) Break-even point in dollar sales 3. Compute the break-even point in dollar sales for the West region. (Round intermediate calculations to two decimal places) Break-even point in dollar sales 4. Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 2 and 3 0 East West Company 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? O Yes O NoStep by Step Solution
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