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sa Sales Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format segmented income statement as shown below:
sa Sales 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 $ 990,000 East $ 660,000 West $ 330,000 528,000 132,000 56,000 214,500 742,500 247,500 147,000 100,500 $ 76,000 $ 24,500 65,000 $ 35,500 Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income 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. 115,500 91,000 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? Total Company East West
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