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	$	915,000		$	305,000		$	610,000
Cost of goods sold		585,600			152,500			433,100
Gross margin		329,400			152,500			176,900
Selling and administrative expenses		284,000			126,000			158,000
Net operating income	$	45,400		$	26,500		$	18,900

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 $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.

Redo the intern's segmented incomes statement using the contribution format