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

Required:

2-a. Compute the companywide break-even point in dollar sales.

2-b. Compute the break-even point for the Chicago office and for the Minneapolis office.

2-c. Is the companywide break-even point greater than, less than, or equal to the sum of the Chicago and Minneapolis break-even points?

3. By how much would the companys net operating income increase if Minneapolis increased its sales by $108,750 per year? Assume no change in cost behavior patterns.

4. Assume that sales in Chicago increase by $72,500 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs.

a. Prepare a new segmented income statement for the company. (Round your percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).)

Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format segmented income statement as shown below: Total Company West East Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income $1,035,000 690,000345, 000 248,400 96,600 77,000 $ 19,600 828,000 207,000 136,000 71,000 60,000 $ 11,000 579,600 110,400 59,000 $ 51,400 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 4 Req 5 Req 1 to3 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? West ompany