Exercise 7-10 (Algo) Companywide and Segment Break-Even Analysis [LO7-5] 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 $910,000 Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Required: East $ 650,000 West $ 260,000 637,000 273,000 133,000 468,000 182,000 70,000 169,000 91,000 63,000 140,000 56,000 $ 112,000 $ 28,000 $ 84,000 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. 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?