EX 6-10 Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format segmented income statement as shown below: 10 Total Sales Variable expenses Contribution nargin Traceable fixed expenses Segment nargin Conmon fixed expenses Net operating incone $ 960,000 640,000 320,000 768,000 537,600 230, 400 192,000 117,000 75,000 55,000 $ 20,000 54,000 48,400 89,600 63,000 26,600 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, Print 4. Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 2 and 3. Use Relerencesth 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 1 to 3 Req 4 Req 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? West C Req 1 to 3 Req 5 > EX 6-10 Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format segmented income statement as shown below 10 points Total 960,000 640,000 320,000 768,00037800 89,600 102,400 Variable expenses Contribution margin Traceable fixed expenses Segnent margin Common fixed expenses Net operating income 75,000 48,400 S 26,600 5,000 20,000 Hnt 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 Print 4. Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 2 and 3. Use eferencesthe 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 1 to 3 Req 4 Req 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 No
