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. Sales Cost of poods sold Gross margin Selling and administrative e Net operating income Total Company $855.ee 564.300 290, 780 26.8.ee $ 22,200 Commercial $ 285, Bee 153.900 131.10e 118,000 $ 13,100 Residential $570,000 410,400 159,600 15e. $ 9,600 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 $76,500 of common fixed expenses that would continue to be Incurred even if the Commercial or Residential segments are discontinued. $64.000 of fixed expenses that would be avoided if the Commercial segment is dropped, and $42.000 of fixed expenses that would be avoided if the Residential segment is dropped Required: 1. Do you agree with the intern's decision to use an absorption format for her segmented income statement? 2. Based on a review of the Intern's segmented income statement a. How much of the company's common fixed expenses did she allocate to the Commercial and Residential segments? b. Which of the following three allocation bases did she most likely used to allocate common fixed expenses to the Commercial and Residential segments: (a) sales. (b) cost of goods sold, or (c) gross margin? 3. Do you agree with the intern's decision to allocate the common fixed expenses to the Commercial and Residential segments? 4. Redo the Intern's segmented income statement using the contribution format 5. Compute the companywide break-even point in dollar sales 6. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of $18,000 and $36.000, respectively, and to lower its company wide sales commission percentage from 109 to 5. Calculate the new break-even point in dollar sales for the Commercial Division and the Residential Division Complete this question by entering your answers in the tabs below. 4. Redo the intern's segmented income statement using the contribution format 5. Compute the companywide break even point in dollar sales. 6. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions at $18,000 and $36.000, respectively, and to lower its companywide sales commission percentage from 10% to 5% break-even point in dollar sales for the Commercial Division and the Residential Division. Complete this question by entering your answers in the tabs below. Req 1 Rege Req2A Req 28 Reg 2B Req3 Reg 3 Rega Req 4 Regs. Reg 6 Rego Req 7 Do you agree with the intern's decision to use an absorption format for her segmented income statement? Rest Req 2A) WHIRU URHUWg uree location bases did she most likely used to allocate common foxed expenses to the Commer Residential segments: (a) sales. (b) cost of goods sold, or (d gross margin? 3. Do you agree with the intern's decision to allocate the common fixed expenses to the Commercial and Residential segmen 4. Redo the intern's segmented income statement using the contribution format 5. Compute the companywide break-even point in dollar sales. 6. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly $18,000 and $36,000, respectively, and to lower its companywide sales commission percentage from 10% to 5% Calculate th break-even point in dollar sales for the Commercial Division and the Residential Division Complete this question by entering your answers in the tabs below. Req 1 2 Reg 28 Req3 Reqt Reqs Red 6 Req? Based on a review of the intern's segmented income statement, how much of the company's common fixed expenses did she allocate to the Commercial and Residential segments? Commercial Residential Common foxed expenses ( Reqt Req 2B > SUCIUSE Uyuous sok, ord gross margin? 3. Do you agree with the intern's decision to allocate the common fixed expenses to the Commercial and Residential seg 4. Redo the intern's segmented income statement using the contribution format. 5. Compute the companywide break-even point in dollar sales. 6. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total mon $18.000 and $36.000, respectively, and to lower its companywide sales commission percentage from 10% to 5% Calcula break-even point in dollar sales for the Commercial Division and the Residential Division Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Reg 2B Reg 3 Reg 4 Req 5 Reg 6 Reg 7 Based on a review of the intern's segmented income statement, which of the following three allocation bases did she most likely used to allocate common fixed expenses to the Commercial and Residential segments? Sales Cost of goods sold Gross margin EMM ATORY HIU xed expenses did she allocate to the commercial and Residential segments b. Which of the following three allocation bases did she most likely used to allocate common fixed expenses to the Comme Residential segments: (a) sales. (b) cost of goods sold, or ( gross margin? 3. Do you agree with the intern's decision to allocate the common fixed expenses to the Commercial and Residential segme 4. Redo the intern's segmented income statement using the contribution format. 5. Compute the companywide break-even point in dollar sales. 6. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total month $18,000 and $36.000, respectively, and to lower its companywi break-even point in dollar sales for the Commercial Division and the Residential Division. Complete this question by entering your answers in the tabs below. Reg 1 Reg! Req2A Req 28 Req 28 Rula3 | Rega Req 4 Reg 5 Regs Reg 6 Reg 7 Do you agree with the intern's decision to allocate the common fixed expenses to the Commercial and Residential segments? Ores ONO Reg 1 Req ZA Req 2B Reg 3 Req 4 Req5 Req 6 Req 7 Redo the intern's segmented income statement using the contribution format. Toxaway Company Income Statement Total Company Commercial Residential Variable expenses: Total variable expenses ARMA NI JIU doldle to the Commercial and Residential segment b. Which of the following three allocation bases did she most likely used to allocate common fixed expenses to the Corn Residential segments: (a) sales. (b) cost of goods sold, or (d gross margin? 3. Do you agree with the intern's decision to allocate the common fixed expenses to the Commercial and Residential seg 4. Redo the intern's segmented income statement using the contribution format. 5. Compute the companywide break-even point in dollar sales. 6. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division. 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total mont $18,000 and $36.000. respectively, and to lower its companywide sales commission percentage from 10% to 5% Calcula break-even point in dollar sales for the Commercial Division and the Residential Division Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Req3 Reg 3 Reg 4 Rege Regs Reg 6 Req6 Req 7 Reg? 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 Residential segments: (a) sales. (b) cost of goods sold, or (gross margin? 3. Do you agree with the intern's decision to allocate the common fixed expenses to the Commercial and Residential segr 4. Redo the intern's segmented income statement using the contribution format. 5. Compute the companywide break even point in dollar sales. 6. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division. 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total mont $18,000 and $36,000, respectively, and to lower its companywide sales commission percentage from 10% to 5%. Calculat break-even point in dollar sales for the Commercial Division and the Residential Division. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Reg 3 Req3 Req 4 Req 4 Reg 5 Req 5 Req6 R eg Compute the break-even point in dollar sales for the Commercial Division and for the Residenlal Division. (Round CM ratio to 2 decimal places and final answer to the nearest whole dollar amount.) Commercial Division Residential Division Break-even point . compute the companywide break-even point in dollar sales. 6. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly $18,000 and $36.000, respectively, and to lower its companywide sales commission percentage from 10% to 5% Calculate break-even point in dollar sales for the Commercial Division and the Residential Division. Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Reg 2B Reg 4 Reg 5 Req6 Reg 7 Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of $18,000 and $36,000, 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 Residential Division Break-even point