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. 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?

Complete Question:

Crossfire Company segments its business into two regions - East 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

Instructions: (As given).

1. Computation of the companywide break-even point in dollar sales:

Break-even point in dollar sales

= Sales = Total costs

Sales = $816,000

Total costs = Variable costs + Traceable fixed costs

= $675,000 + $141,000

= $816,000

2. Computation of the break-even point in dollar sales for the East region:

Break-even point in dollar sales

= Sales = Total costs

= $530,000

Total costs = $530,000 ($480,000 + 50,000)

3. Computation of the break-even point in dollar sales for the West region:

Break-even point in dollar sales

= Sales = Total costs

= $286,000

Total costs = $286,000 ($195,000 + 91,000)

4. A new segmented income statement based on the break-even dollar sales that are computed in requirements 2 and 3:

                                                Total Company         East              West

Sales                                             $816,000        $530,000       $286,000

Variable Expenses                        675,000           480,000          195,000

Contribution margin                       141,000             50,000          105,000

Traceable Fixed Expenses            141,000             50,000            91,000

Segment Margin                                $0                     $0                   $0

Common Fixed Expenses            59,000

Net Operating Income/(loss)    ($59,000)

Crossfire's net operating income (loss) in the new segmented income statement is: $59,000

5. I think that Crossfire should allocate the common fixed expenses to the East and West regions when computing the break-even points for each region.

This ensures that Crossfire does not run into net operating loss, company-wide.  The segmented sales revenues for the regions can be used to allocate the common fixed expenses.  Other suitable bases are traceable fixed expense, number of sales and administrative staff, or activity cost pools, using activity-based costing technique.

Explanation:

a) Break-even point in sales dollars is the sales point at which Crossfire's sales revenue will be equal to the total costs.  At this point, Crossfire will not make any profit or incur any loss.

because she sucked. : )

(but so does trump, don't @ me)

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'