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3 Yourway Company is a merchandiser the segments its business into two division-Commercial and Residents. The company's accounting intern was asked to prepare segmented income

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3 Yourway Company is a merchandiser the segments its business into two division-Commercial and Residents. The company's accounting intern was asked to prepare segmented income statements that the companys dvisional managers could use to calculate their break even points and make decision. She took the por months companywide income statement and prepared the absorption format segmented income statement shown below Contod in martin strative met cei $100,000.00 5. 31. 200 156, 4,00 111,02 10,00 00 Furice in preparing these statements, the irror determined that towaway's only variable iting and administrative expenses a 10% COMIGon on all sales. The company total food expenses include 578.000 of common fed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, 562,000 or fed expenses that would disappear of the Comercin segmentis dropped and $40.000 of five expenses that would disappear the Residential segments dropped Required: 1 Do you agree with the intern's decision to use an absorption format for her segmente come statement? 2. Bored on a review of the intera's segmented income statement How much of the companys common fed expenses aid she locate to me Commercial and Residential segments? . Which of the following the location based did the most rely used to locale common fed expenses to me Commercial and Residential segments: sales. Cost of goods sold or gross margin 3. Do you agree with the intern's decision to allocate the common fixed expenses to the Commercial and Residential segments 4. Redo the items segmented income statement using the contribuon format 5. Compute the companyde break-even point in dollar sales 6. Compute the break even point in dolar sales for the Commercial Division and for the Residential Division Acume the company decided to pay it is represente in me commercial and Residential Dos monthly colory of $17.000 and 534000, respectively, and to lower its company de les commission percentage from toto 5 Calculate the new break even non dollar sales for the Commerce in and the Resident Division

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