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Question 6 Exercise 6-10 Companywide and Segment Break-Even Analysis [LO6-5] Crossfire Company segme

Question 6 Exercise 6-10 Companywide and Segment Break-Even Analysis [LO6-5] Crossfire Company segme

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6 Exercise 6-10 Companywide and Segment Break-Even Analysis [LO6-5] Crossfire Company segments its business into two regions East and West. The company prepared a contribution format segmented income statement as shown below 10 points Total Company $ 900,000 East 600,000 s 3e0,ee0 West Sales Variable expenses Contribution margin Traceable fixed expenses Segnent margin Common ixed expenses 675,00480,900195 000 225,000 141,000 84,000 70,000 14,000 59,000 120,000 es,000 elook References Net operating come 25,000 Required: 1 Compute the companywide break-even point in dollar sales 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?

 
manish jayant 22-Apr-2020

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