REQ #4 ONLY

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 $1,120,000 $770,000 $350,000 Variable 840,000 616,000 224,000 expenses Contribution margin 280,000 154,000 126,000 Traceable fixed expenses 155,800 65,000 90,000 Segment margin 125,000 $ 89,000 $ 36,000 Common fixed 70,000 expenses Net operating $ income 55,000 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. 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 Req 4 Req 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? Show less Total East West Company Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin 0 Common fixed expenses not traceable to products Net operating loss $ 0 0 0 0 0 0