Please help with Required 1-7 I am so lost.

ts eBook Hint Print References 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; Sales Cost of goods sold. Gross margin Selling and administrative expenses Net operating income Total Company Commercial $ 765,000 $ 255,000 510,000 142,800 255,000 244,000 $ 11,000 112,200 106,000 $6,200 Residential $ 510,000 367,200 142,800 138,000 $4,800 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 $85,500 of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, $52,000 of fixed expenses that would disappear if the Commercial segment is dropped, and $30,000 of fixed expenses that would disappear if the Residential segment is dropped. Required: 1. Do you agree with the intern's decision to use an absorption format for her segmented income statement? 2. Based on a review of the Intern's segmented income statement. a. How much of the company's common fixed expenses did she allocate to the Commercial and Residential segments? b. Which of the following three allocation bases did she most likely used to allocate common fixed expenses to the Commercial and Residential segments: (a) sales, (b) cost of goods sold, or (c) gross margin? 3. Do you agree with the intern's decision to allocate the common fixed expenses to the Commercial and Residential segments? 4. Redo the intern's segmented income statement using the contribution format. 5. Compute the companywide break-even point in dollar sales. 6. Compute the break-even point in dollar sales 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 $12,000 and $24,000, 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. Req 1 Req 2A Req 2B Req 3 Req 4 Req 7 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Common fixed expenses Req 3 Residential Req 4 Req 7 Reg 1 Req 28 Sales Ocost of goods sold Gross margin- Req 3 Req 4 Req 5 Req 6 Req ZA Based on a review of the intern's segmented income statement, which of the following three allocation bases did she most likely used to allocate common fixed expenses to the Commercial and Residential segments? Req 7 Req 1 Req 2A Req 6 Do you agree with the intern's decision to allocate the common fixed expenses to the Commercial and Residential segments? Yes ONO Req 28 Req 3 Req 3 Redo the Intern's segmented income statement using the contribution format. Toxaway Company Income Statement Total Company Req 1 Req 2A Sales Variable expenses Cost of goods sold Sales commissions Total variable expenses Contribution margin Req 2B $ 0 0 0 $ 0 Commercial Req 4 Req 6 Req 7 Complete this question by entering your answers in the tabs below. Req 28 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.) Break-even point Req 1 Reg 2A Req 3 Req 6 Req 7 break-even point in dollar sales for the Commercial Division and the Residential Division. Complete this question by entering your answers in the tabs below. Req 24 Req 6 Req 7 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 answer to the nearest whole dollar amount.) Req 1 Break-even point Req 28 Commercial Division Req 3 Residential Division Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Break-even point Reg 28 Req 3 Commercial Division Residential Division Req 4 Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of $12,000 and $24,000, 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.) Req 7 Show less A