this is all one question. thank you

Return to question 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 $750,000 5e8,eee 25e, eee 24e, eee $ 10,00 Commercial Residential $ 250,000 $ see, eee 140, eee 360,000 11e, eee 140, eee 184, eee 136, eee $ 6, eee $ 4,eee 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 $72,000 of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, $55,000 of fixed expenses that would be avoided if the Commercial segment is dropped, and $38,000 of fixed expenses that would be avoided if the Residential segment is dropped Required: 1. Do vou agree with the intern's decision to use an absorption format for her segmented income statement? my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. 7 Return to question 32 ts In preparing these statements, the Intern determined that Towaway's only variable selling and administrative expense is a 10% sales commission on all sales. The company's total fixed expenses include $72,000 of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, $55.000 of fixed expenses that would be avoided if the Commercial segment is dropped, and $38,000 of fixed expenses that would be avoided 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 $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 Return to 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 salar $15,000 and $30,000, respectively, and to lower its companywide sales commission percentage from 10% to 5% Calculate the ne break-even point in dollar sales for the Commercial Division and the Residential Division Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 2B Req3 Req 4 Reg 5 Reg 6 Reg 7 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 $ 889,287 Return to 7 Complete this question by entering your answers in the tabs below. Req1 Req 2A Reg 28 Reg 3 Reg 4 Req 5 Req6 Reg 7 Compute the break-even point in dollar sales for the Cominercial Division and for the Residential Division (Round CM ratio to 2 decimal places and final answers to the nearest whole dollar amount.) Commercial Residential Division Division Break-even point Prev 7 of 7 Next Return to quest Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 28 Req3 Reg 4 Reg 5 Reg 6 Reg 7 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. (Round CM ratio to 2 decimal places and final answers to the nearest whole dollar amount.) Show less Commercial Division Residential Division Break-even point