HSSESSIHEIH IUUI Irlallle Exercise 6-10 (Static) Companywide and Segment Break-Even Analysis [LOG-5] Crossfire Company segments its business into two regionsEast and West. The company prepared a contribution format segmented income statement as shown below: Total Company East West Sales $ 900,000 $ 600,000 $ 300,000 Variable expenses 675,000 480,000 195,000 Contribution margin 225,000 120,000 105,000 Traceable fixed expenses 141,000 50,000 91,000 Segment margin 84,000 $ 70,000 $ 14,000 Common fixed expenses 59,000 Net operating income $ 25,000 Required: 1. Compute the companywide breakeven point in dollar sales. 2. Compute the break-even point in dollar sales for the East region. 3. Compute the breakeven point in dollar sales for the West region. 4. Prepare a new segmented income statement based on the breakeven dollar sales 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 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 Req 4 Req 5 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. Note: For all requirements, round intermediate calculations to 2 decimal places. Show less A 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 Req 4 Req 5 Prepare a new segmented income statement based on the break-even dollar sales you computed in requirements 2 and 3. What is Crossfire's net operating income (loss) in your new segmented income statement? Sales Variable expenses Contribution margin Traceable xed expenses Product line segment margin Common xed expenses not traceable to products Net operating loss Complete this question by entering your answers in the tabs below. Req 1 to 3 Reg 4 Req 5 Do you think Crossfire should allocate its common fixed expenses to the East and West regions when computing the break- even points for each region?