pany is a merchandiser that segments its business into two divisions-Commercial and Residential. tern was asked to prepare segmented income statements that the company's divisional managers en points and make decisions. She took the prior month's companywide income statement and pre nted income statement shown below: As sold 7 administrative expenses Total Company $ 750,000 500,000 250,000 240,000 $ 10,000 Commercial $ 250,000 140,000 110,000 194,000 $ 6,000 Residential $ 500,000 360,000 140,000 136,000 $ 4,000 ng income hese statements, the intern determined that Toxaway's only variable selling and administrative exper n all sales. The company's total fixed expenses include $72,000 of common fixed expenses that wo if the Commercial or Residential segments are discontinued, $55,000 of fixed expenses that would egment is dropped, and $38,000 of fixed expenses that would disappear if the Residential segment e with the intern's decision to use an absorption format for her segmented income statement? review of the intern's segmented income statement. of the company's common fixed expenses did she allocate to the Commercial and Residential segme e following three allocation bases did she most likely used to allocate common fixed expenses to the gments: (a) sales, (b) cost of goods sold, or (c) gross margin? ee with the intern's decision to allocate the common fixed expenses to the Commercial and Resident cern's segmented income statement using the contribution format. e companywide break-even point in dollar sales. e break-even noint in dollar sales for the Commercial Division and for the Residential Division Prey 7 of 20 Next > pany is a merchandiser that segments its business into two divisions-Commercial and Residential. tern was asked to prepare segmented income statements that the company's divisional managers en points and make decisions. She took the prior month's companywide income statement and pre nted income statement shown below: As sold 7 administrative expenses Total Company $ 750,000 500,000 250,000 240,000 $ 10,000 Commercial $ 250,000 140,000 110,000 194,000 $ 6,000 Residential $ 500,000 360,000 140,000 136,000 $ 4,000 ng income hese statements, the intern determined that Toxaway's only variable selling and administrative exper n all sales. The company's total fixed expenses include $72,000 of common fixed expenses that wo if the Commercial or Residential segments are discontinued, $55,000 of fixed expenses that would egment is dropped, and $38,000 of fixed expenses that would disappear if the Residential segment e with the intern's decision to use an absorption format for her segmented income statement? review of the intern's segmented income statement. of the company's common fixed expenses did she allocate to the Commercial and Residential segme e following three allocation bases did she most likely used to allocate common fixed expenses to the gments: (a) sales, (b) cost of goods sold, or (c) gross margin? ee with the intern's decision to allocate the common fixed expenses to the Commercial and Resident cern's segmented income statement using the contribution format. e companywide break-even point in dollar sales. e break-even noint in dollar sales for the Commercial Division and for the Residential Division Prey 7 of 20 Next >