C6 practice

Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Total Company $750,000 500.000 250,000 240,000 10.000 Comercial $250,000 140,000 110,000 104.000 Residential $ 500.000 360.000 140.000 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 $72,000 of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, $55.000 of fixed expenses that would be avoided if the Commercial segment is dropped, and $38,000 of fixed expenses that would be avoided 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 $15,000 and $30,000, 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. Carch 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 b. Which of the following three allocation bases did she most likely used to allocate common fixed expenses to the Commercia 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 segment 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 s $15,000 and $30,000, 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. Req 1 Reg 2A Req 2B Req 3 Req 4 Req 5 Reg 6 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? Commercial Residential Common fixed expenses Prex 3 of 3 !!! Next > Req 1 Req 2A Reg 2B Reg 3 Req 4 Req5 Req 6 Req 7 Redo the intern's segmented income statement using the contribution format. Toxaway Company Income Statement Total Company Commercial Residential Variable expenses Total variable expenses 0 0 ( Req3 Reg 6 > 3. Do you agree with the intern's decision to allocate the common fixed expenses to the Commercial and Residential segment 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 s $15,000 and $30,000, 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. Reg 1 Reg 2A Reg 2B Reg 3 Req5 Reg 6 Reg 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 3. Do you agree with the intern's decision to allocate the common fixed expenses to the Commerciali 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 mo $15,000 and $30,000, respectively, and to lower its companywide sales commission percentage from 10% to 5%. Calcu 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. Req3 Reg 4 Req 2A Req 2B Reg 1 Req 5 Reg 6 Req 7 Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division. (Round CM ratio 2 decimal places and final answers to the nearest whole dollar amount.) Commercial Division Residential Division Break-even point 3. Do you agree with the intern's decision to allocate the common fixed expenses to the Commercial and Residential seg 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 mon $15,000 and $30,000, respectively, and to lower its companywide sales commission percentage from 10% to 5%. Calcula 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 7 Reg 2B Req 5 Req 4 Req3 Req 2A Reg 6 Reg 1 Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of $15,000 and $30,000, respectively, and to lower its company wide 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 ratic to 2 decimal places and final answers to the nearest whole dollar amount.) Show less Commercial Division Residential Division Break-even point ( Req 6 Req7