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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

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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 East West Sales $ 945, 000 $ 630,000 $ 315, 000 Variable expenses 756,000 529, 200 226, 800 Contribution margin 189, 000 100, 800 88, 200 Traceable fixed expenses 115, 000 52,000 63,000 Segment margin 74, 000 $ 48 , 800 $ 25, 200 Common fixed expenses 62,000 nces Net operating income $ 12, 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. Req 1 to 3 Reg 4

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