Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I attempted and got this completely wrong. please help Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format
I attempted and got this completely wrong. please help
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 $1,050,000 787,500 262,500 152,000 110,500 70.000 $ 48,508 East $ 700,000 560,000 140,000 61,000 $ 79,900 West $ 350,000 227,500 122,500 91,000 $ 31,500 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? 5 Req 1 to 3 Req 4 Reg 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. (Round intermediate calculations to 2 decimal places) Dollar sales for the whole company Dollar sales for the East region Dollarsales for the West region Break-Even point $ 888,000 $ 592,030 $ 295,970 Req 1 to 3 Req 4 Req5 Prepare a new segmented income statement based on the break-even dollar sales that you comp 3. Use the same format as shown above. What is Crossfire's net operating income (loss) in your statement? Sales $ Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income Total East West Company 592,930 $ 295,970 888,000 473,624 192,381 666,004 119,306 103,589 221,996 61,000 91,000 152,000 58,306 12,589 69,996 700,000 (641,694) $ Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started