I need help with these Questions number 5,6, and 7 only

from my managerial accounting homework, the picture below contain all the details.

m ReviewTestSi x | ReviewTestSt x l m ReviewTestSt x | m MyGradesB x | u UnitETest x | u EMGZUIText x l u HomeworkHi x E HomeworkM x + - (- 9 C! i httpsnewconnectmheducation.comfowfconnect.htm| Q '3 6 FE Homework #4 0 Saved Help SaveEExll Submit Checkmyw Toxaway Company is a merchandiser that segments its business into two divisionsCommercial 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 companywtde income statement and prepared the absorption format segmented income statement shown below: 'l oirits Total p Company Commercial Residential Sales 1 756,666 a. 256,666 a 566,666 Cost or goods sold 566,666 146,666 366,666 93W\" Gross margin 256, 666 116, 666 146, 666 Selling and administrative expenses 246,666 1 66 135,666 Pm Net operating income % 16,666 $ 5,666 5 4,666 References . In preparing these statements. the intern determined that Toxaway's only variable selling and administrative expense is a 1096 sales commission on all sales The company's total fixed expenses include $?2,000 of common fixed expenses that would continue to be incurred even ifthe CommerCIal or Residential segments are discontinued. 355.000 of fixed expenses that would be avoided ifthe Commercial segment is dropped. and $38000 of fixed expenses that would be avoided ifthe 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 ofthe 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 ofthe followtng 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 segments1 4 Redo the intern's segmented income statement using the contribution format 5. Compute the compaanIde break-even point in dollar sales 6. Compute the break-even point in dollar sales for the Commercial Division and for the Restdential Division. 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of 315.000 and $30000, respectively, and to lower its companywtde sales commission percentage from 1096to 5% Calculate the new break-even point in dollar sales for the Commercial Division and the Residential Division E Type here to search ll;