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 $1,035,000 $345,000 $690,000 676,200 179,400 496,800 Cost of goods sold Gross margin Selling and administrative expenses 358,800 165,600 193,200 316,000 142,000 74,000 Net operating income $42,800 $23,600 19,200 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 $58,500 of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, $66,000 of fixed expenses that would be avoided if the Residential segment is dropped, and $88,000 of fixed expenses that would be avoided if the Commericial segment is dropped