Exercise 6-10 Companywide and Segment Break-Even Analysis (LO6-5] Crossfire 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 Total Company $1,040,000 676,000 364,000 148,000 East $ 650,000 442,000 208,000 64,000 $ 144,000 West $ 390,000 234,000 156,000 84,000 $ 72,000 Segment margin Common fixed expenses Net operating income 216,000 76,000 140,000 $ 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? Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Req 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 A Break-Even point Dollar sales for the whole company | $ 640,000 Dollar sales for the East region $ 200,000 Dollar sales for the West region | $ 210,000 Req 1 to 3 Req 4 > Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 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? Total Company $ 640,000 East 200,000 West $ 210,000 $ Sales Variable expenses 640,000 200,000 210,000 640,000 200,000 210,000 640,000 Complete this question by entering your answers in the tabs below. Req 1 to 3 Reg 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? TOYes No