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Toxaway Company is a merchandiser that segments its business into two divisions - Commercial and Residential. The company's Compute the break - even point in

Toxaway Company is a merchandiser that segments its business into two divisions-Commercial and Residential. The company's Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division.
Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of
$14,500 and $29,000, 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. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly
salary of $14,500 and $29,000, 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.) 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 answers to the nearest whole dollar amount.)
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:
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 $61,500 of common fixed expenses that would continue to be
incurred even if the Commercial or Residential segments are discontinued, $84,000 of fixed expenses that would disappear if the
Commercial segment is dropped, and $62,000 of fixed expenses that would disappear if the Residential segment is dropped.
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