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	$	1,040,000		$	650,000		$	390,000
Variable expenses		676,000			442,000			234,000
Contribution margin		364,000			208,000			156,000
Traceable fixed expenses		148,000			64,000			84,000
Segment margin		216,000		$	144,000		$	72,000
Common fixed expenses		76,000
Net operating income	$	140,000

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.

(Round intermediate calculations to 2 decimal places)

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?

Yes or No