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Crossre Company segments its business into two regionsEast and West. The company prepared a contribution format segmented income statement as shown below: Total Cmpany East:
Crossre Company segments its business into two regionsEast and West. The company prepared a contribution format segmented income statement as shown below: Total Cmpany East: West: Sales ,5 750,000 $ 500,000 $ 250,000 Variable expenses 525,000 375,000 150,000 Contribution margin 225,000 125,000 100,000 Traceahle fixed expenses 140,000 60,000 80,000 Segment margin 85,000 5 65.000 5 20.000 Common fixed expenses 70,000 Net operating income $ 15,000 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 Crossre's net operating income [loss] in your new segmented income statement? 5. Do you think that Crossre should allocate its common fixed expenses to the East and West regions when computing the break- even points for each region
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