Crossfire Company segments its business into two regions—Eastand West. The company prepared a contri

Crossfire Company segments its business into two regions—Eastand West. The company prepared a contribution format segmentedincome statement as shown below: Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the Eastregion. 3. Compute the break-even point in dollar sales for the Westregion. (Round intermediate calculations to 2 decimal places) 4. Prepare a new segmented income statement based on thebreak-even dollar sales that you computed in requirements 2 and 3.Use the same format as shown above. What is Crossfire’s netoperating income (loss) in your new segmented income statement? 5. Do you think that Crossfire should allocate its common fixedexpenses to the East and West regions when computing the break-evenpoints for each region? Yes or No . . .

 

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