Exercise 7-10 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 West $ 320,000 Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses $ 960,000 East $640,000 768,000 192,000 537,600 102,400 230,400 89,600 117,000 54,000 63,000 75,000 $ 48,400 55,000 $ 26,600 Net operating income $ 20,000 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? Complete this question by entering your answers in the tabs below.