#50 00 8 Same Help Problem 6-24 (Algo) Companywide and Segment Break-Even Analysis; Decision Making (LO6-4, LO6-5] Toxaway Company is a merchandiser that segments its business into two divisions-Commercial and Residential. The company's accounting intern was asked to prepare segmented income statements that the company's divisional managers could use to calculate their break-even points and make decisions. She took the prior month's companywide income statement and prepared the absorption format segmented income statement shown below points Mc Graw Sales Cost of goods sold Gross margin Setting and administrative expenses Net operating incone Total Company Commercial Residential $960,000 $ 320,000 $640,000 636,800 169,600 467,200 323,200 150,400 172,000 290,000 $27,200 132,000 164,000 $18,400 $8,000 in preparing these statements, the intern determined that Toxaway's only variable selling and administrative expense is a 10% sales commission on all sales. The company's total fixed expenses include $66,000 of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, $78.000 of fixed expenses that would disappear if the Commercial segment is dropped, and $56,000 of fixed expenses that would disappear if the Residential segment is dropped Required: 1. Do you agree with the intern's decision to use an absorption format for her segmented income statement? 2. Based on a review of the intern's segmented income statement. a. How much of the company's common fixed expenses did she allocate to the Commercial and Residential segments? b. Which of the following three allocation bases did she most likely used to allocate common fixed expenses to the Commercial and Residential segments: (a) sales, (b) cost of goods sold, or (c) 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 intern's segmented income statement using the contribution format. 5. Compute the companywide break-even point in dollar sales 6. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of $25,000 and $50,000, respectively, and to lower its companywide sales commission percentage from 10% to 5% Calculate the new break-even point in dollar sales for the Commercial Division and the Residential Division. Complete this question by entering your answers in the tabs below. < Prev 8 of 16 Next > Save & Call Submit 00 8 0.8 points Skipped eBook , Commercial segment is dropped, and $56,000 of fixed expenses that would disappear if the Residential segment is dropped Required: 1. Do you agree with the intern's decision to use an absorption format for her segmented income statement? 2. Based on a review of the intern's segmented income statement. a. How much of the company's common fixed expenses did she allocate to the Commercial and Residential segments? b. Which of the following three allocation bases did she most likely used to allocate common fixed expenses to the Commercial and Residential segments: (a) sales. (b) cost of goods sold, or (c) 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 intern's segmented income statement using the contribution format. 5. Compute the companywide break-even point in dollar sales. 6. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division. 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of $25,000 and $50,000, respectively, and to lower its companywide sales commission percentage from 10% to 5%. Calculate the new break-even point in dollar sales for the Commercial Division and the Residential Division. Complete this question by entering your answers in the tabs below. References Mc Graw Tam Req 1 Req 2A Req 28 Req 3 Req 4 Req 5 Req 6 Reg 7 Do you agree with the intern's decision to use an absorption format for her segmented income statement? Yes ONO Req2A > < Prev 8 of 16 Next > 8 0.8 points Skipped eBook Required: 1. Do you agree with the intern's decision to use an absorption format for her segmented income statement? 2. Based on a review of the intern's segmented income statement. a. How much of the company's common fixed expenses did she allocate to the Commercial and Residential segments? b. Which of the following three allocation bases did she most likely used to allocate common fixed expenses to the Commercial a Residential segments: (a) sales, (b) cost of goods sold, or (c) 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 intern's segmented income statement using the contribution format. 5. Compute the companywide break-even point in dollar sales. 6. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division. 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly sala $25,000 and $50,000, respectively, and to lower its companywide sales commission percentage from 10% to 5%. Calculate the break-even point in dollar sales for the Commercial Division and the Residential Division. Complete this question by entering your answers in the tabs below. References Req 1 Req 2A Req 28 Req 3 Req 4 Req 51 Req 61 Req 7 Based on a review of the intern's segmented income statement, how much of the company's common fixed expenses did she allocate to the Commercial and Residential segments? Common fixed expenses Commercial Residential ferences Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 3 Req 4 Req 5 Req 6 Req 7 Based on a review of the intern's segmented income statement, which of the following three allocation bases did she most likely used to allocate common fixed expenses to the Commercial and Residential segments? OSales OCost of goods sold Gross margin eBook References Division and for the Residential Division. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of $25,000 and $50,000, respectively, and to lower its companywide sales commission percentage from 10% to 5%. Calculate the new break-even point in dollar sales for the Commercial Division and the Residential Division. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 3 Req 4 Req 5 Req 6 Req 7 Do you agree with the intern's decision to allocate the common fixed expenses to the Commercial and Residential segments? Yes No 0.8 points Skipped eBook Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 281 Req 3 Req 4 Req 5 Req 6 Req 7 Redo the intern's segmented income statement using the contribution format. References Variable expenses: Toxaway Company Income Statement Total Company Commercial Residential Total variable expenses 0 0 0 0 0 0 $ 0 $ 0 $ 0 Skipped look 4. Redo the intern's segmented income statement using the contribution format ve cummon xed expenses to the Commercial and Residential segments? 5. Compute the companywide break-even point in dollar sales. 6. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division. 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of $25,000 and $50,000, respectively, and to lower its companywide sales commission percentage from 10% to 5% Calculate the new break-even point in dollar sales for the Commercial Division and the Residential Division. Complete this question by entering your answers in the tabs below. References Req 1 Req 2A Req 28 Req 3 Req 4 Req 5 Req 6 Req 7 Compute the companywide break-even point in dollar sales. (Round intermediate calculations to 3 decimal places and final answer to the nearest whole dollar amount.) Break-even point expenses to the Commercial and Residential segments? Skipped Hitem's segmented income statement using the contribution format 5. Compute the companywide break-even point in dollar sales. eBook 6. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division, 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of $25,000 and $50,000, respectively, and to lower its companywide sales commission percentage from 10% to 5%. Calculate the new break-even point in dollar sales for the Commercial Division and the Residential Division. Complete this question by entering your answers in the tabs below. References Req 1. Req 2A Req 2B Req 3 Req 4 Req 5 Req 6 Req 7 Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division. (Round CM ratio to 2 decimal places and final answer to the nearest whole dollar amount.) Commercial Division Residential Division Break-even point eBook in dollar sales for the Commercial Division and for the Residential Division. 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of $25,000 and $50,000, respectively, and to lower its companywide sales commission percentage from 10% to 5%. Calculate the new break-even point in dollar sales for the Commercial Division and the Residential Division. Complete this question by entering your answers in the tabs below. References Req 1 Req 2A Req 28 Req3 Req 41 Req 5 Reg 6 Req 7 Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of $25,000 and $50,000, respectively, and to lower its companywide sales commission percentage from 10% to 5%. Calculate the new break-even point in dollar sales for the Commercial Division and the Residential Division. (Round CM ratio to 2 decimal places and final answers to the nearest whole dollar amount.) Show less & Commercial Division Residential Division Break-even point < Req 6