Taxamay Compamy is a merchind ser that segments its butiness into two divisions- Commercial and Rissidential The comperiys nccounting intern was a akied lo pcepare regmented income statements that the compamis dikisional mariagers could use to caiculate their breakicwen paints and meke checlsions. She took the prior monthis corripanmide incoing statement and perepated the absorption forthat sogmented income statement shown belows. mprepareg theise stefements. the intern determind that Toxaways only varlable seifng and administrative exgense is a tois sales commission on ail shles. The compamys totoi focd expenses include 572.000 of common fueded expennises that would continue to be Commercial segment is dropped, and $48.000 of fimed expenses that would diroppent if the Residential segrient is dropped. Requlred: 1. Do you agree with the internts decision to use an absorption format for her segmentad income staternent? 2. Based on a review of the intern's segmented income statement. 4. Redo the interfis segmented income statement using the condibution formet. 5. Compute the companywide treak-even point in dolar toles. 6. Compute the brebk-even point in clolar sales for the Comperciol Bivishon and for the Aesidential Divisian. 7. Assume the company decided to puy ls sales representeshess in the Comprerclal and Residential Divisions a sotal inonthly salary af. 521009 and 542,000 , respectivedy, and to iower its companywide sales commission percentage froms 10% to 5 si. Caicuiate the new break-even point in doliar sales for the Commerelal Division snd tho ferthential Divisice. Complete this question by entering your answers in the tobs bolow.Toxaway Company is a mireharkiser that sethents its biriness into two tivisions-Commercial and Residential. Fhe componys theit break-even points and make decisicns. She took the prior monthls contpanywide income statement and prepared ehe obsicistion fortiat seg mented incobene stotement shown bellaw In preparing these statements, the intern determined that foxbways only variable seting and adiministrative expense is a. 10g as asles. comamission on all sales. The comphery's total foxd espenses inchude 572.000 of comenon fixed expinses that would continca to be incurted evon if the Commerclal or Residential segments are discontinued, $70 cog of fined expenses that would disappear if the Commetcial segment is dropped, and $48.000 of fiwed expenses that would disappear if the Residential segment is dropged Requireds 1. Do you afree with the interns decision to use an absorption format for her iegmented income statement? 2. Based on a revitw of the intern's segmented income statement. a. How much of the compacy's common fied expenses did she allocate to the Commereiat and fiesidential segments? b. Which of the follewing three aliocation bases did the most lkely used to alocate common fixed eapenses to the Cammereigi and Residential segments (a) rales, (b) cost of goods sold, of (c) gross maryln? 3 Do you agree wit.

1. Taxamay Compamy is a merchind ser that segments its butiness into two divisions- Commercial
and Rissidential The comperiys nccounting intern was a akied lo pcepare regmented income
statements that the compamis dikisional mariagers could use to caiculate their breakicwen paints
and meke checlsions. She took the prior monthis corripanmide incoing statement and perepated
the absorption forthat sogmented income statement shown belows. mprepareg theise stefements.
the intern determind that Toxaways only varlable seifng and administrative exgense is a tois sales
commission on ail shles. The compamys totoi focd expenses include 572.000 of common fueded
expennises that would continue to be Commercial segment is dropped, and $48.000 of fimed
expenses that would diroppent if the Residential segrient is dropped. Requlred: 1. Do you agree
with the internts decision to use an absorption format for her segmentad income staternent? 2.
Based on a review of the intern's segmented income statement. 4. Redo the interfis segmented
income statement using the condibution formet. 5. Compute the companywide treak-even point in
dolar toles. 6. Compute the brebk-even point in clolar sales for the Comperciol Bivishon and for
the Aesidential Divisian. 7. Assume the company decided to puy ls sales representeshess in the
Comprerclal and Residential Divisions a sotal inonthly salary af. 521009 and 542,000 ,
respectivedy, and to iower its companywide sales commission percentage froms 10% to 5 si.
Caicuiate the new break-even point in doliar sales for the Commerelal Division snd tho ferthential
Divisice. Complete this question by entering your answers in the tobs bolow.Toxaway Company is
a mireharkiser that sethents its biriness into two tivisions-Commercial and Residential. Fhe
componys theit break-even points and make decisicns. She took the prior monthls contpanywide
income statement and prepared ehe obsicistion fortiat seg mented incobene stotement shown
bellaw In preparing these statements, the intern determined that foxbways only variable seting and
adiministrative expense is a. 10g as asles. comamission on all sales. The comphery's total foxd
espenses inchude 572.000 of comenon fixed expinses that would continca to be incurted evon if
the Commerclal or Residential segments are discontinued, $70 cog of fined expenses that would
disappear if the Commetcial segment is dropped, and $48.000 of fiwed expenses that would
disappear if the Residential segment is dropged Requireds 1. Do you afree with the interns
decision to use an absorption format for her iegmented income statement? 2. Based on a revitw of
the intern's segmented income statement. a. How much of the compacy's common fied expenses
did she allocate to the Commereiat and fiesidential segments? b. Which of the follewing three
aliocation bases did the most lkely used to alocate common fixed eapenses to the Cammereigi
and Residential segments (a) rales, (b) cost of goods sold, of (c) gross maryln? 3 Do you agree
with the intermh decision to allocate the common fixcd arpenses to the Commercial and
Residential segments? 4. Redo the intern's segrmented income statement us ing the contribution
fotenat. 5. Compute the companyeride treakreven point in dollar sales. 6. Compute the break-even
point in dollar sales for the Compercia Divislon and for the Residential 0 vivion. 7 Assume the
company decided to pay its soles repesentathes in the Commerciaf and Pesidential Divisons a
fotal monthly saiary of break-even point in deliar sales for the Commercial Divition and the
Pesidential Divigion. Complete this guestion try entering your answert in the tabs below. Assume
the compary docised to pay ite sales representatwe in the Cerpriercial and Residential Dryiaions a
total inantily