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please answer all parts thank you Problem 6.24 (Algo) Companywide and Segment Break-Even Analysis; Decision Making [LO6-4, LO6-5] Toxaway Company is a merchandiser with two
please answer all parts thank you Problem 6.24 (Algo) Companywide and Segment Break-Even Analysis; Decision Making [LO6-4, LO6-5] 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 dections She look the prior month's companywde income statement and prepared the absorpiton format seginented tricome 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 $63,000 of common foced expenses that will continue even if the Cointinctiat of Residentiat segment is discontinued, $82,000 of Txed expenses that will disappear if the Commercial segment is dropped, and $60,000 of fixed expenses that will 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 incomestatement. 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 Recidential segments- (a) sales; (b) cost of goods sold, or (c) gross margin? 3. Do you agree with the intern's decision to allocate 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 dolfar sales for the Comimercial Diviston 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 $13,500 and $27,000, 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
please answer all parts thank you
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