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

Sales $ $1,035,000$ $ $345,000$ $ $690,000$

Cost of goods sold $676,200179,400496,800$

Gross margin $358,800165,600193,200$

Selling and administrative expenses $316,000142,000174,000$

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 $$58,500$ of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, $$88,000$ of fixed expenses that would disappear if the Commercial segment is dropped, and $$66,000$ of fixed expenses that would disappear if the Residential segment is dropped.

$6.$ 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 $$16,500$ and $$33,000,$ 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.