Crossfire Company segments its business into two regionsEast and West. The company prepared a contribution...
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Crossfire Company segments its business into two regionsEast and West. The company prepared a contribution format segmented income statement as shown below:
| Total Company | East | West | ||||||
| Sales | $ | 900,000 | $ | 600,000 | $ | 300,000 | ||
| Variable expenses | 675,000 | 480,000 | 195,000 | |||||
| Contribution margin | 225,000 | 120,000 | 105,000 | |||||
| Traceable fixed expenses | 141,000 | 50,000 | 91,000 | |||||
| Segment margin | 84,000 | $ | 70,000 | $ | 14,000 | |||
| Common fixed expenses | 59,000 | |||||||
| Net operating income | $ | 25,000 | ||||||
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 Crossfires net operating income (loss) in your new segmented income statement?
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