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h9lp pl7- its multiple parts of one question; i cant figure out req 2A, req 4,5,6,7

Problem 7-24 (Algo) Companywide and Segment Break-Even Analysis; Decision Making [LO7-4, LO7-5] Toxaway Company is a merchandiser that segments its business into two divisions-Commerclal and Residental. The company's 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 month's companywide income statement and prepared the absorption format segmented income statement shown below. In prepaing these statements, the intem determined that Toxaway's only variable seling and administrative expense is a 105 sales commission on all sales. The companys total fixed expenses include $81,000 of common fixed expenses that would continue to be incurred even if the commerdal or Residential segments are discontinued, $58,000 of fixed expenses that would disappear if the Commercial segment is dropped, and $36,000 of fxed expenses that woudd disappear if the Residential segment is dropped. Required: 1. Do you agree with the intern's decision to use an absorpton 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 Commerciar and Residental segments? b Which of the foliowing three alocaton bases did she most likely used to allocate common fixed expenses to the commercial and Residental 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 expense; to the Commerclal and Residential segments? 4. Redo the intern's segmented income statement using the contribution format. 5. Compute the companywide break-even point in doitar sales. 6. Compute the breakeven point in dollar sales for the Commercial Division and for the Residential Dision. 7. Ascume the compary decided to pay its sales representatves in the Commercal and Residential Divisions a total monthly salary or $15,000 and $30,000, respectively, and to lower its companywide sales commission percentage from 10% to 5%. Caiculate the new break even point in doilar sales for the Commerclal Division and the Residentiai Division. Answer is not complete. Cemplete this questien by entering your answers in the tabs below. Dovou agree with the intern's decision to wie an absorption format for her stamented income statement? 1. Do you agree with the intern's decision to use an absorption format for her segmented income statement? Required: 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 intem's deasion 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%. Caiculate the new break-even point in dollar sales for the Commerclal Division and the Residential Division. Answer is not complete. Complete this question by entering your answers in the tabs below. Based on a review of the intern's segmented income statement, how much of the company's common fixed expenses did she Mlocate to the Commerdal and Residential segments? Residentual 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 companymide break-even point in dollar sales: 6. Compute the break-even point in dollar sales for the Commercial Division and for the Residentia Division. 7. Assume the company decided to pay its sales representatives in the Commercial and Residental Divisions a total monthly salary of $15,000 and $30,000, respectively, and to lower its companywide sales commission percentage from 10% to 5%. Caiculate the new break-even point in dollat sales for the Commerclal Division and the Residentlal Division. Answer is not complete. Complete this question by entering your answers in the tabs below. Redo the intern's segmented income statement using the contribution format. In preparing these statements, the intem detemined that Toxaway's only variable selling and adminisurative 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. Do you agree with the intern's decision to use an absorption format for her segmented income statement? Required: 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 Commerclal 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 Residentil 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Compute the companywide break-even point in dollar sales. (Round intermediate calculations to 3 decimal places and finat answer to the nearest whole dollar amount.) a. How much of the company collocation 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 Commerclal 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 Commerciar and Residential Divisions a totai monthly salary of $15,000 and $30,000, respectively, and to lower its companywide sales commission percentage from 10% to 5%. Calculate the new breakeven point in dollar sales for the Commerclal Division and the Residential Division. Q Answer is not complete. Complete this question by entering your answers in the tabs below. 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 answers to the nearest whole dollar amount.) 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%. Caiculate the new break-even point in dollar sales for the Commerclal Division and the Residential Division. Answer is not complete. Complete this question by entering your answers in the tabs below. Assume the company decided to pay its cales representatives in the Commerclal 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 dollat amount.)

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