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 the contribution format segmented income statement shown below: Sales Variable expenses Total Company $900,000 675,000 East West $600,000 $300,000 480,000 195,000 Contribution margin Traceable fixed expenses 225,000 141,000 120,000 50,000 105,000 91,000 Segment margin 84,000 $ 70,000 $ 14,000 Common fixed expenses 59,000 Net operating income $ 25,000 Required: 1. Compute the companywide break-even point in dollar sales (Round intermediate calculations to 2 decimal places.) Break-even point in dollar sales 2. Compute the break-even point in dollar sales for the East region. (Round Intermediate calculations to 2 decimal places.) Break-even point in dollar sales 3. Compute the break-even point in dollar sales for the West region. (Round Intermediate calculations to 2 decimal places.) Break-even point in dollar sales 4. Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 2 and 3. (Round intermediate calculations to 2 decimal places.) Total Company East West 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