Problem 4 (10 points)Hampshire Industries has two geographic…
Problem 4 (10 points)Hampshire Industries has two geographic segments that they operate – Eastern and Western. The following information pertains provides segmented sales and cost data that have been provided to you by the newly hired accountant. Total Eastern Western Sales $1,000,000 $800,000 $200,000 Variable Costs $450,000 $350,000 $100,000 Fixed Costs $151,250 Of the fixed costs, $50,000 would be eliminated if we eliminated the Western segment and $75,000 would be eliminated if we eliminated the Eastern segment. Required: a. Compute the contribution margin for the Eastern segment. (1 points) b. Compute the segment margin for the Eastern segment. (1 points) c. Compute the contribution margin for the Western segment. (1 points) d. Compute the segment margin for the Western segment. (1 points) e. If Hampshire decided to eliminate the Western segment, how would the overall company income be affected? (1 point) f. What is the break-even in sales dollars for Hampshire? (1 point) g. If total sales increase by 20%, compute the new operating income that would result. (1 point) h. For your calculation in g, list 3 assumptions that you used in your calculation. (3 points)