Need help to find Sales on Total Company, East, West
Variable Expenses on Total Company, East, West
Crossfire Company segments its business into two regionsEast and West. The company prepared a contribution format segmented income statement as shown below:
Exercise 6-10 (Algo) Companywide and Segment Break-Even Analysis (LO6-5] 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 $ 1,125,000 843,750 281,250 160,000 121,250 50,000 $ 71,250 East $ 750,000 600,000 150,000 62,000 $ 88,000 West $ 375,000 243,750 131,250 98,000 $ 33,250 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. 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 to 3 Reg 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) Show less Dollar sales for the whole company Dollar sales for the East region Dollar sales for the West region Break-Even point S 840,000 S 310,000 s 280,000 Reg 1 to 3 Reg 4 Reg 5 Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 2 and 3. What is Crossfire's net operating income (loss) in your new segmented income statement? Total Company East West Sales 0 Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating loss 0 160,000 (160,000) 50,000 (210,000) 62,000 (62,000) 0 98,000 (98,000) Complete this question by entering your answers in the tabs below. Req 1 to 3 Reg 4 Reg 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? Yes No
