Crossfire Company segments its business into two regionsEast and West. The company prepared the contribution format segmented

Crossfire Company segments its business into two regions—East and West. The company prepared the contribution format segmented income statement shown below:

Required:
1. Compute the companywide break-even point dollar in 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 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?Why?

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Total Company ast West Variable expenses.... Contribution margin ..225,000 120,000 105,000 141,000 50,000 91,000 Common fixed expne Net operating income 84,000 70,000 14,000 59,000 25,000