Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crosstre company segments its business into two regions-East and west. ine company preparea a contribution format segmentea income statement as shown below: Sales Variable expenses

image text in transcribed

Crosstre company segments its business into two regions-East and west. ine company preparea a contribution format segmentea income statement as shown below: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 910,000 637,000 273,000 133,000 140,000 56,000 $ 84,000 East $ 650,000 468,000 182,000 70,000 $ 112,000 West $ 260,000 169,000 91,000 63,000 $ 28,000 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 (oss) 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 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 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Thomas Edmonds, Christopher, Philip Olds, Frances McNair, Bor

4th edition

77862376, 978-0077862374

More Books

Students also viewed these Accounting questions