Question: Sales Variable expenses. Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Required: Total Company $ 900,000 675,000 225,000 141,000
Sales Variable expenses. Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Required: Total Company $ 900,000 675,000 225,000 141,000 East $ 600,000 480,000 West $ 300,000 195,000 105,000 91,000 120,000 50,000 84,000 $ 70,000 $ 14,000 59,000 $ 25,000 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. 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? Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Total Company East West 0 0 0 0 0 0 Common fixed expenses not traceable to products Net operating loss $ 0
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