Compute the companywide break-even point in dollar sales.

Compute the break-even point in dollar sales for the Commercial 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 $12,000 and $24,000, 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.

Toxaway Company is a merchandiser with two divisions-Commercial and Residential. The company's accounting intern was asked to prepare segmented income statements 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: In preparing these statements, the intern determined Toxaway's only variable selling and administrative expense is a 10% sales commission on all sales. The company's total fixed expenses include $85,500 of common fixed expenses that will continue even if the Commercial or Residential segment is discontinued, $52,000 of fixed expenses that will disappear if the Commercial segment is dropped, and $30,000 of fixed expenses that will disappear if the Residential segment is dropped