Check my wor 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 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Total Company $ 930,000 623, 100 306,9ee 288, eee $ 18,900 Commercial $ 310,000 170,580 139, see 128,eee $ 11,500 Residential $ 620, eee 452,600 167,480 160,000 $ 7,400 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 $69,000 of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, $74,000 of fixed expenses that would disappear if the Commercial segment is dropped, and $52,000 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 foed 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 HE Next Vedt LUMILUUN Che MILLIMI IVIIVIIVISTE 7 Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly $23,000 and $46,000, 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 Reg 4 Reg 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 $23,000 and $46,000, 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 Next Prev 10 of 11 g Linkedin Learning Saved Help s UCURLIONIMUMI MUSLIU III 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total me $23,000 and $46,000, 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. Req 1 Req 2A Req 2B Reg 3 Reg 4 Reg 5 Reg 6 Reg 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 Next > meducation.com Costing and Segment Reporting 6 V. E Google Docs G My Drive - Google in Linkedin Learning Saved Help Sey MULINISUN MUU WILLVILISMI 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total mon $23,000 and $46,000, 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. Reg Dee Req 1 Req 2A Reg 3 Reg 4 Reg 5 Reg 6 Reg 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? O Sales O Cost of goods sold Gross margin Req3 > Next > Help Sa Reg 1 Req 2A Req 2B Req3 Reg 4 Reg 5 Req 6 Reg 7 Redo the intern's segmented income statement using the contribution format. Toxaway Company Income Statement Total Company Comme+al Residential Variable expenses 0 0 Total variable expenses 0 0 0 0 0 $ 0 $ 0 $ 10 of 11 Next Next 10 of 11 Oral Wedin Leating Saved Help Save MHUV Wur Luty we WILUN 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 month $23,000 and $46,000, respectively, and to lower its companywide sales commission percentage from 10% to 5%. Calculate 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 2B Reg 3 Reg 4 Reg 5 R066 Req 7 Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division. (Round CM rabia to 2 decimal places and final answer to the nearest whole dollar amount.) Commercial Residential Division Division Break-even point ( Req5 Req7 > Next > Prev 10 of 11 60