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Toxaway Company is a merchandiser that sepments its business into two divisions - Commercial and Residentisl The companys accounting intern was asked to prepate segmented income statements that the compony's divisional manejers could use to calculate their break-even points and make docisions. She took the prior month's companywide income statement and prepared the absorption format segmented income statement shown below In preparing these statements, the intein determined that Touaway's only variable seling and administrative crpense is o tons salos. commission on all sales. The company's tatal fred expenses inctude $58,500 of common fored expenses that would continuo to be incurred even if the Commercial or Resldential segments are discontinaed, 588.000 of fived expenses that would disappear if the Commercial segmient is dropped, and $66,000 of fixed expenses that would disappear if the Residential segment is dropped. Aequired: Required: t. Do you agrse with the intern's decision to use an obsorption format for her segmentod income statemear? 2. Based on a roview of the intern's segmented income statement. Residentiel segments: (o) solos, (b) cost of goods sold, or (c) gross margin? 3. Do you agreo with the intein s decision to allocate the common fixed expenses to the Cammercial and Ressidential segments? 4. Redo the interm's segmented income statecient vaing the contraution format. 5 Computo the companywide break-even point in dollar sales. 6. Compute the beeak-even point in dollar sales for the Commerclal Division and for the Reudental Division. breakeven point in dollar sales tor the Commercial Omision and the Residential Divesion Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of $16,500 and $33,000, 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. (Round CM ratio to 2 decimal places and final answers to the nearest whole dollar amount.)