o you agree with the intern's decision to use an absorption format for her segmented income statement? Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly satary of $15,000 and $30,000, respectively, and to tower 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. Note: Round CM ratio to 2 decimal places and final answers to the nearest whole dollar amount. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division. Note: Round CM ratio to 2 decimsl places and final answers to the nearest whole dollar amount. based on a review of the intern's segmented income statement, which of the following three allocation bases did she mott likely used based on a review of the interns segmented commercial and Residential segments? Darn the intern's seamented income statement using the contribution format. Toxaway Company is a merchandiser that segments its business into two divisions-Commercial and Residential. The company's accounfing intern was asked to prepare segmented income statements that the company's divisional managers could use to caliculate their break-even polnts and make decisions. She took the prior month's companywide income statement and propared the absorption format segmented income statement shown below: 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 incurrod cven if the Commerciat or Residential segments are discontinued, $55,000 of fixed expenses that would disappear if the Commercial segment is dropped, and $38,000 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 soid, 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 polnt in dolfar sales. 5. 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 dollaf sales for the Commerciat Division and the Residentigli Division. Compute the companywide break-even point in dollar sales. Note: Round intermediate cafculations to 3 decimat places and final answer to the nearest whole dollar amount. Based on a review of the intern's segmented income statement, how much of the company's common fixed expenses did she aliocate to the Commercial and Residential segmints? Complete this question by entering your answers in the tabs below. Do you agree with the intern's decision to allocate the common' fixed expenses to the Commercial and Residential segments
