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Image for In preparing these statements the intern determined that Toxaway's only variable selling and administrate expHow do I solve the excel Image text transcribed for accessibility

Image for In preparing these statements, the intern determined that Toxaway's only variable selling and administrate expHow do I solve the excel

Image text transcribed for accessibility: In preparing these statements, the intern determined that Toxaway's only variable selling and administrate expense is a 10% sales commission on all sales. The company's total fixed expenses include $72,000 common fixed expenses that would continue to be incurred even if the Commercial or Residential segment are discontinued, $38,000 of fixed expenses that would be avoided if the Residential segment is dropped and $55,000 of fixed expenses that would be avoided if the Commercial segment is dropped. Required: 1. Do you agree with the interns decision to use an absorption format for her segmented inc statement? 2-a. Based on the interns segmented income statement, can you determine how she allocated company's common fixed expenses to the Commercial and Residential segments? 2-b. Do you agree with her decision to allocate the common fixed expenses to the Commercial Residential segments? 3. Redo the intern's segmented income statement using the contribution format

Jun 22 2020 View more View Less

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