Exercise 6-10 Companywide and Segment Break-Even Analysis [LO6-5]

Crossfire Company segments its business into two regionsEast and West. The company prepared the contribution format segmented income statement shown below:

	Total Company		East		West
Sales	$	1,020,000	$	680,000	$	340,000
Variable expenses		765,000		544,000		221,000
Contribution margin		255,000		136,000		119,000
Traceable fixed expenses		156,000		58,000		98,000
Segment margin		99,000	$	78,000	$	21,000
Common fixed expenses		65,000
Net operating income	$	34,000

Required:

1.	Compute the companywide break-even point in dollar sales. (Round intermediate calculations to two decimal places)

2.	Compute the break-even point in dollar sales for the East region. (Round intermediate calculations to two decimal places)

3.	Compute the break-even point in dollar sales for the West region. (Round intermediate calculations to two decimal places)

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