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:

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 $70,500 of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, $50,000 of fixed expenses that would be avoided if the Residential segment is dropped, and $72,000 of fixed expenses that would be avoided if the Commericial segment is dropped.

Toxaway Company is a merchandiser that segments its business into two divisions?½Commercial and Residential. The company?½s accounting intern was asked to prepare segmented income statements that the company?½s divisional managers could use to calculate their break-even points and make decisions. She took the prior month?½s companywide income statement and prepared the absorption format segmented income statement shown below: 4. 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.) 5. 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.) 6. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of $22.000 and $44.000. 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.) Break-even point In preparing these statements, the intern determined that Toxaway?½s only variable selling and administrative expense is a 10% sales commission on all sales. The company?½s total fixed expenses include $70,500 of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, $50,000 of fixed expenses that would be avoided if the Residential segment is dropped, and $72,000 of fixed expenses that would be avoided if the Commericial segment is dropped