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Taxaway 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

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Taxaway 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 $340,000 $ 680,000 1,020,000 Cont of goods sold 669,800 1R0.2009 489.600 Gross margin 350,200 159,800 190,400 Selling and administrative expenses 312,000 140,000 172,000 Met operating Income $ 38,200 19,800 $ 19,400 In preparing these statements, the intern determined that Tokaway's only variable selling and administrative expense is a 10% sales commission on all sales. The company's total fixed expenses include $60,000 of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, $86,000 of fixed expenses that would disappear if the Commercial segment is dropped, and $64,000 of fixed expenses that would disappear if the Residential segment is dropped. Compute the companywide break-even point in dollar sales. (Round Intermediate calculations to 3 decimal places and final answer to the nearest whole dollar amount.) Break-even point Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division (Round CM ratio to 2 decimal places and final answer to the nearest whole dollar amount.) Commercial Residential Division Division Break-even point Assume the company decided to pay Its sales representatives in the Commercial and Residential Divisions a total monthly salary of $15,500 and $31,000, 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.) Show less Commercial Division Rosidential Division Break-even point

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