Crosstre Company segments its business into two regions East and West. The company prepared a contribution format segmented income statement as shown below. Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 1,995,000 884,000 281,899 112,899 East $ 670,699 542,789 127,300 57,000 West $335,000 261,300 73,700 55,000 $ 70,300 $ 18,709 89 , 56,000 33,000 $ 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? Required: 1. Compute the comporywide 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. Reg 1 to 3 Reg 4 Reg 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 your 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 Reg 4 > puruLyILU ILU ILULLI ** UIMILITEILYALILI 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 bre even points for each region? Complete this question by entering your answers in the tabs below. Reg 1 to 3 Reg 4 Reg 5 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? (Round your intermediate calculations to 2 decimal places.) Total Company East West 0 0 0 0 0 0 $ 0 . ILU - 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 brea even points for each region? Complete this question by entering your answers in the tabs below. Reg 1 to 3 Req 4 Reg 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 ONO
