Problem 7-24 (Algo) Companywide and Segment Break-Even Analysis; Decision Making [LO7-4, LO7.5 Toxaway Company is a merchandiser that segments its business into two divisions - Commercial and Residential The company accounting intern was asked to prepare segmented income statements that the company's divisional managers could use to calculat their break-even points and make decisions. She took the prior month's companywide income statement and prepared the absorptic format segmented income statement shown below: In preparing these statements, the intern determined that Toxaway's only variable seling and administratwe expense is a 10% sales commission on al 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, $64,000 of foxed expenses that would dicanpear if the Commercial segment is cropped, and $42,000 of foxed expenses that would disappear if the Residential segment is dropped Required: 1. Do youragree with the intern's decision to use an absorption format for her segmented income statement? 2 Based on a review of the interns segmented income statement. a. How much of the company's common fxed expenses did she allocate to the Commercial and Residential segnents