Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format...

 

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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 $ 975,000 Req 1 to 3 731,250 243,750 139,000 104,750 73,000 $ 31,750 Req 4 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 the same format as shown above. 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? Dollar sales for the whole company Dollar sales for the East region Dollar sales for the West region East $ 650,000 520,000 130,000 55,000 $ 75,000 Complete this question by entering your answers in the tabs below. West $ 325,000 211,250 113,750 84,000 29,750 Req 5 $ Break-Even point 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 A 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. Use the same format as shown above. What is Crossfire's net operating income (loss) in your new segmented income statement? Total Company East West Complete this question by entering your answers in the tabs below. Req 1 to 3 Reg 4 Yes ONO Req 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? 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 $ 975,000 Req 1 to 3 731,250 243,750 139,000 104,750 73,000 $ 31,750 Req 4 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 the same format as shown above. 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? Dollar sales for the whole company Dollar sales for the East region Dollar sales for the West region East $ 650,000 520,000 130,000 55,000 $ 75,000 Complete this question by entering your answers in the tabs below. West $ 325,000 211,250 113,750 84,000 29,750 Req 5 $ Break-Even point 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 A 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. Use the same format as shown above. What is Crossfire's net operating income (loss) in your new segmented income statement? Total Company East West Complete this question by entering your answers in the tabs below. Req 1 to 3 Reg 4 Yes ONO Req 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 rating: 100% (QA)

1 Breakeven point is the sales were the contribution equals the fixed costs Let X be the sales at br... View the full answer