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Crossfire Company segments its business into two regionsEast and West. The company prepared the contribution format segmented income statement shown below:

	Total Company		East		West
Sales	$	1,170,000	$	720,000	$	450,000
Variable expenses		877,500		576,000		301,500
Contribution margin		292,500		144,000		148,500
Traceable fixed expenses		166,000		67,000		99,000
Segment margin		126,500	$	77,000	$	49,500
Common fixed expenses		60,000
Net operating income	$	66,500

Required:

1.	Compute the companywide break-even point in dollar sales. (Round intermediate calculations to two decimal places.)

2.	Compute the break-even point in dollar sales for the East region. (Round intermediate calculations to two decimal places.)

3.	Compute the break-even point in dollar sales for the West region. (Round intermediate calculations to two decimal places.)

4.	Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 2 and 3. (Round intermediate calculations to two decimal places.)

______________	Total Company	East	West

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?
	Yes No

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