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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 West Company
Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format segmented income statement as shown below: Total West Company $ 945,000 630,000 East Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income $ 315,000 226,800 88,200 63,000 $ 25,200 756,000 189,000 115,000 529,200 100, 800 52,000 74,000 48,800 62,000 $ 12,000 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 1 to 3 Req 4 Req 5 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 point Dollar sales for the whole company Dollar sales for the East region Dollar sales for the West region
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