Help Save & CH Exercise 6-10 Companywide and Segment Break-Even Analysis (L06-5) 6 Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format segmented Income statement as shown below: wat segmen $ $ West 375,000 243,750 Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $1,125,000 843, 750 281,250 160,eee 121,250 50, eee $ 71,250 East 750,000 600 150 62 4.000 5 13,250 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 (oss) 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? tis Crossfiremmon fixed expen Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Reg 5 Next 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. Reg 1 to 3 Reg 4 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. (Round Intermediate calculations to 2 decimal places) Show less Break-Even point Dollar sales for the whole company Dollar sales for the East region Dollar sales for the West region Req4 > Complete this question by entering your answers in the tabs below. 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 req 3. Use the same format as shown above. What is Crossfire's net operating income (loss) in your new segme statement? Total Company East West 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 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 even points for each region? Complete this question by entering your answers in the tabs below. nces Reg 1 to 3 Req 4 Req 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? No
