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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

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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 Total Company East $1,005,000 $ 670,000 335,000 West Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income 804,000 201,000 542,700 127,300 112,e00 57,0055,00 261,300 89,000 56,000 $ 33,000 70,300 18,700 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

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