Toxawoy 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 formot segmented income statement shown below: In preparing these statements, the intem determined that Toxaway's only varioble selling ond administrotive expense is a tox sales commission on all soles. The company's total fixed expenses include $84,000 of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, $54,000 of fixed expenses that would disappear if the Commercial segment is dropped, and $32.000 of fixed expenses that would disoppear if the Residential segment is dropped Required: 1. Do you agree with the intern's decision to use an obsorption formot for her segmented income statement? 2. Based on o review of the intern's segmented income statemen. o. How much of the company's common fowed expentes did she allocate to the Commercial and Residential segments? b. Which of the following three allocotion bases did she most likely used to allocate common fixed expenses to the Commerciol and Residentibl segments, (o) sales. (b) cost of goods sold, or (c) gross morgin? 3. Do you ogree with the intern's decision to allocote the common fixed expenses to the Commercial and Residential segments? 4. Reco the intern's segmented income statement using the contrbution format. 5. Compute the companywide breok-even point in dollor soles. 6. Compute the breakieven point in dollar soles 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 $13.000 and $26,000, respectively, and to lower its componywide soles commission percentage from 10% to 5%. Caiculote the new break even point in dollar soles for the Commercial Division and the Residential Division. Complete this question by entering your answers in the tabs below. Based on a review of the intern's segmented income statement, how much of the company's common fixed expenses did she allocate to the Commercial and Prosidential segments? Complete this question by entering your answers in the tabs below. Redo the intern's segmented income statement using the contribution format