prev | Question #3 (of 5) | next 3. value 25.00 points 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 $870,000 S 290,000 $580,000 571,300 153,700 417,600 Sales Cost of goods sold Gross margin Net operating income 298,700 136,300 162,400 Selling and administrative expenses 272,000 120,000 152,000 $ 26,700 16,300 10,400 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 $75,000 of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, $44,000 of fixed expenses that would be avoided if the Residential segment is dropped, and $66,000 of fixed expenses that would be avoided if the Commericial segment is dropped Required