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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 $ 1,080,000 810,000 270,000 161,000 109,000 78,000 $ 31,000 East $ 780,000 624,000 156,000 66,000 $ 90,000 West $ 300,000 186,000 114,000 95,000 $ 19,000 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. 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 Reg 4 Reg 5 Prepare a new segmented income statement based on the break-even dollar sales that you computed in requ 3. What is Crossfire's net operating income (loss) in your new segmented income statement? Total Company East West 0 0 0 Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating loss 0 0 0 $ 0

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