Inbox (3,914) - mohammed yee528mal.com - Gmail FINAL - Google Docs Com Chapter 6 (0) Saved Help 1 Exercise 6-10 Companywide and Segment Break-Even Analysis (L06-5) Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format segmented Income statement as shown below. Book Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Connon fixed expenses Net operating income Total Company $ 900,000 675,000 225,000 141,eee 84,00 59,000 $ 25,000 East $ 680, eee 480.00 120,000 50,000 $ 70, Hint West $ 300, eee 195,000 105,000 91,00 $ 14, cea 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? Complete this question by entering your answers in the tabs below. Reg i to Reg4 Req5 1. Compute the company wide 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 ar 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 bre even points for each region? Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Reg 5 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the East gion. 3. Compute the break-even point in dollar sales for the West region. (Round intermediate calculations to 2 decimal places) Show less Break-Even point Dollar sales Dollar sales for the East region Dollar sales for the West region Reg4 >