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Please write neatly and clearly label final answers, thanks! Problem 6-24 Companywide and Segment Break-Even Analysis; Decision Making CLO6-4, LO6-5] Toxaway Company is a merchandiser

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Problem 6-24 Companywide and Segment Break-Even Analysis; Decision Making CLO6-4, LO6-5] Toxaway Company is a merchandiser that segments its business into two divisions-Commercial 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 companywide income statement and prepared the absorption format segmented income statement shown below: Total Company Commercial Residential Sales $855,000 $285,000 $570,000 Cost of goods sold 564,300 53.900 410.400 Gross margin 290,700 131,1 00 159,600 Selling and administrative expenses 268.000 8.000 50.000 Net operating income 22,700 13,100 9,600 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 $76,500 of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, $42,000 of fixed expenses that would be avoided if the Residential segment is dropped, and $64,000 of fixed expenses that would be avoided if the Commercial segment is dropped

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