Please help me out with this question!!!

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:

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 $78,000 of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, $40,000 of fixed expenses that would be avoided if the Residential segment is dropped, and $62,000 of fixed expenses that would be avoided if the Commericial segment is dropped.

Required: 1. Do you agree with the interns decision to use an absorption format for her segmented income statement?

Yes____ No______

2. Based on the interns segmented income statement, can you determine how she allocated the companys common fixed expenses to the Commercial and Residential segments?

Commercial__________ Residential___________

Do you agree with her decision to allocate the common fixed expenses to the Commercial and Resi-dential segments?

Yes____ No_____

3. Redo the interns segmented income statement using the contribution format.

4. Compute the companywide break-even point in dollar sales.

Break-even point________

5. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division.

Commercial__________ Residential___________

6. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of $ 17,000 and $ 34,000, 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 ResidentialDivision.

Commercial__________ Residential_____________

Please help me out with this question!!! Toxaway Company is a merchandiser that segments its business into two divisions½Commercial and Residential. The company½s accounting intern was asked to prepare segmented income statements that the company½s divisional managers could use to calculate their break-even points and make decisions. She took the prior month½s companywide income statement and prepared the absorption format segmented income statement shown below:4. Compute the companywide break-even point in dollar sales. Break-even point________ 5. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division. Commercial__________ Residential___________ 6. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of dollar 17,000 and dollar 34,000, respectively, and to lower its companywide sales commission percentage from 10percent to 5percent. Calculate the new break-even point in dollar sales for the Commercial Division and the ResidentialDivision. Commercial__________ Residential_____________In preparing these statements, the intern determined that Toxaway½s only variable selling and administrative expense is a 10percent sales commission on all sales. The company½s total fixed expenses include dollar78,000 of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, dollar40,000 of fixed expenses that would be avoided if the Residential segment is dropped, and dollar62,000 of fixed expenses that would be avoided if the Commericial segment is dropped.Required: 1. Do you agree with the intern½s decision to use an absorption format for her segmented income statement? Yes____ No______ 2. Based on the intern½s segmented income statement, can you determine how she allocated the company½s common fixed expenses to the Commercial and Residential segments? Commercial__________ Residential___________ Do you agree with her decision to allocate the common fixed expenses to the Commercial and Resi-dential segments? Yes____ No_____ 3. Redo the intern½s segmented income statement using the contribution format. Please help me out with this question!!! Toxaway Company is a merchandiser that segments its business into two divisions½Commercial and Residential. The company½s accounting intern was asked to prepare segmented income statements that the company½s divisional managers could use to calculate their break-even points and make decisions. She took the prior month½s companywide income statement and prepared the absorption format segmented income statement shown below:4. Compute the companywide break-even point in dollar sales. Break-even point________ 5. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division. Commercial__________ Residential___________ 6. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of dollar 17,000 and dollar 34,000, respectively, and to lower its companywide sales commission percentage from 10percent to 5percent. Calculate the new break-even point in dollar sales for the Commercial Division and the ResidentialDivision. Commercial__________ Residential_____________In preparing these statements, the intern determined that Toxaway½s only variable selling and administrative expense is a 10percent sales commission on all sales. The company½s total fixed expenses include dollar78,000 of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, dollar40,000 of fixed expenses that would be avoided if the Residential segment is dropped, and dollar62,000 of fixed expenses that would be avoided if the Commericial segment is dropped.Required: 1. Do you agree with the intern½s decision to use an absorption format for her segmented income statement? Yes____ No______ 2. Based on the intern½s segmented income statement, can you determine how she allocated the company½s common fixed expenses to the Commercial and Residential segments? Commercial__________ Residential___________ Do you agree with her decision to allocate the common fixed expenses to the Commercial and Resi-dential segments? Yes____ No_____ 3. Redo the intern½s segmented income statement using the contribution format