7. 6 Award: 10.oo points Crossfire Company segments its business into two region

Question

7. 6 Award: 10.oo points Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format segmented income statement as shown below: Total S0,000 650.000 330000 Company East West $ 990,000 660.000 5 330,000 Sales Variable expenses Contribution margin Traceable fixed expenses 742,500 214.500 115,500 132,000 147,000 100,500 56,00091.000 $ 24,500 $ 76,000 Segment margin Common fixed expenses Net operating income fixed exp $-65.00076,00 $ 35,500 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 same format as shown above. What is Crossfire's net operating income (loss) in your new segmented income statement? palnts you taink that Crossfire should alocate 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 3Req 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 (Round intermediate calculations to 2 decimal places) Showy less Break-Even point Dollar sales for the whole company Dollar sales for the East region Dollar sales for the West region

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Q Break even point Explanation Formula 1 $                848,000 =(147000+65000)/(247500/990000) Fixed expenses/contribution margin ratio 2 $                280,000 =56000/(132000/660000) Fixed expenses/contribution margin ratio 3 $                260,000 =91000/(115500/330000) Fixed expenses/contribution margin ratio

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