I need help with question 4, 5,6 and 7 only. thanks
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Bb Practice Quizzes (PQ) – BMG 207: x* Homework Help – Q&A from Onl xHomework #4X+Chttps://newconnect.mheducation.com/flow/connect.htmlGHomework #4iSavedHelpSave & ExitSubmit4Check my workToxaway Company is a merchandiser that segments its business into two divisions-Commercial and Residential. The company’saccounting intern was asked to prepare segmented income statements that the company’s divisional managers could use to calculatetheir break-even points and make decisions. She took the prior month’s companywide income statement and prepared the absorptionformat segmented income statement shown below:pointsTotalCompanyCommercialResidentialSales$750, 000250, 000500, 000eBookCost of goods sold500 , 000140, 000360 , 000Gross margin250, 000110, 000140 , 000PrintSelling and administrative expenses240 ,000104 , 006136,Net operating income10, 000$$6, 000$4, 000ReferencesIn preparing these statements, the intern determined that Toxaway’s only variable selling and administrative expense is a 10% salescommission on all sales. The company’s total fixed expenses include $72,000 of common fixed expenses that would continue to beincurred even if the Commercial or Residential segments are discontinued, $55,000 of fixed expenses that would be avoided if theCommercial 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?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?o. Which of the following three allocation bases did she most likely used to allocate common fixed expenses to the Commercial andResidential 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 Computa the camnamisaida hreal/ awan paint in dollar salesMCGrawHill< E.Prey4 of 5Next >ducationO Type here to search12:11 AM1/22/2019