Exercise $4-10($Algo$)$ Companywide and Segment Break$-$Even Analysis $[$LO$4-5]$

Crossfire Company segments its business into two regions$-$East and West. The company prepared a contribution format segmented

income statement as shown below:

Required:

Compute the companywide break$-$even point in dollar sales.

Compute the break$-$even point in dollar sales for the East region.

Compute the break$-$even point in dollar sales for the West region.

Prepare a new segmented income statement based on the break$-$even dollar sales that you computed in requirements $2$ and $3.$

What is Crossfire's net operating income $($loss$)$ in your new segmented income statement?

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.

Compute the companywide break$-$even point in dollar sales.

Compute the break$-$even point in dollar sales for the East region.

Compute the break$-$even point in dollar sales for the West region.

Note: Round intermediate calculations to $2$ decimal places Complete this question by entering your answers in the tabs below.

Prepare a new segmented income statement based on the break$-$even dollar sales that you computed in requirements $2$ and $3.$ What is Crossfire's net operating income $($loss$)$ in your new segmented income statement?

$\backslash$table$[[,$Total Company,East,West$],[$Sales$,,,],[$Variable expenses,,,$],[$Contribution margin,,,$],[$Traceable fixed expenses,,,$],[$Product line segment margin,,,$],[$Common fixed expenses not traceable to products,,,$],[$Net operating loss,,,$]]$ Complete this question by entering your answers in the tabs below.

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?

Do you think that Crossfire should allocate its common fixed expenses to the East and West regions?