Exercise 7-10 Companywide and Segment Break-Even Analysis (L07-5) 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 Segment margin Common fixed expenses Net operating income Total Company $1,170,000 877,500 292,500 166,000 126,500 60,000 $ 66,500 East $ 720,000 576.000 144,000 67.000 $ 77,000 West $ 450,000 301,500 148,500 99,000 $ 49,500 Req 1 to 3 Reg 4 Req 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? (Round your intermediate calculations to 2 decimal places.) Total Company East West 0 0 0 Sales Variable expenses Contribution margin Traceable forced expenses Product line segment margin Common fixed expenses not traceable to products Net operating income 0 0 0 $ 0 Return to ques 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 to 3 Reg 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 Answer is not complete. to question Complete this question by entering your answers in the tabs below. Req 1 to 3 Reg 4 Reqs 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