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 Req 1 to 3 Total Company $ 1,050,000 787,500 262,500 152,000 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. Req 4 110,500 70,000 $ 40,500 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 5 Dollar sales for the whole company Dollar sales for the East region Dollar sales for the West region East $ 700,000 560,000 140,000 61,000 $ 79,000 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. (Round intermediate calculations to 2 decimal places) Break-Even point West $ 350,000 227,500 122,500 91,000 $ 31,500 Show less A
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 Req 1 to 3 Total Company $ 1,050,000 787,500 262,500 152,000 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. Req 4 110,500 70,000 $ 40,500 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 5 Dollar sales for the whole company Dollar sales for the East region Dollar sales for the West region East $ 700,000 560,000 140,000 61,000 $ 79,000 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. (Round intermediate calculations to 2 decimal places) Break-Even point West $ 350,000 227,500 122,500 91,000 $ 31,500 Show less A
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 7E: Columbia Products Inc. has two divisions, Salem and Seaside. For the month ended March 31, Salem had...
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Please answer all subparts because i cant post last two subpart separately because of these are linked with above parts please thanku
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