Total Company Commercial Residential Sales 51,020,000 $ 340,000 $ 680,000 Cost of goods sold 669,800 180,200 489,600 Gross margin 350,200 159,800 190,400 Selling and administrative expenses 312,000 140,000 172,000 Net operating income $ 38,200 $ 19,800 $ 18,400 I 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 $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 be avoided if the Commercial segment is dropped, and $64,000 of fixed expenses that would be avoided if the Residential segment is dropped