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	$ 1,140,000	$ 760,000	$ 380,000
Variable expenses	855,000	577,600	277,400
Contribution margin	285,000	182,400	102,600
Traceable fixed expenses	144,000	63,000	81,000
Segment margin	141,000	$ 119,400	$ 21,600
Common fixed expenses	72,000
Net operating income	$ 69,000

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?