Question: 1 . Redo the intern s segmented income statement using the contribution format. 2 . Compute the companywide break - even point in dollar sales.

1. Redo the interns segmented income statement using the contribution format.
2. Compute the companywide break-even point in dollar sales.
3. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division.
4. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of $15,000 and $30,000, 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.
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 $81,000 of common fixed expenses that would continue to be
incurred even if the Commercial or Residential segments are discontinued, $58,000 of fixed expenses that would disappear if the
Commercial segment is dropped, and $36,000 of fixed expenses that would disappear if the Residential segment is dropped.
1 . Redo the intern s segmented income statement

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