Toxaway Company is a merchandiser that segments its business into two divisionsCommercial and Residential. The companys accounting intern was asked to prepare segmented income statements that the companys divisional managers could use to calculate their break-even points and make decisions. She took the prior months companywide income statement and prepared the absorption format segmented income statement shown below:

	Total Company			Commercial			Residential
Sales	$	1,020,000		$	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

In preparing these statements, the intern determined that Toxaways only variable selling and administrative expense is a 10% sales commission on all sales. The companys 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.

Required:

2. Based on a review of the interns segmented income statement.

a. How much of the companys common fixed expenses did she allocate to the Commercial and Residential segments?