**Instruction for Educational Website:**---**Task Overview:**Complete the task by entering your answers in the specified tabs below.**Instructions:**1. **Tabs to Use:** - Required A - Required B2. **Task Description:** - Prepare a schedule listing the relevant sales and costs for Segment A.**Schedule Format:**| Relevant Revenue and Cost Items for Segment A | ||------------------------------------------------|----------------------------------------|| | || | || | || Effect on income | |**Additional Steps:**- Click on "Required A" to input initial data.- Proceed to "Required B" as the next step for further input or calculations.**Helpful Tips:**- Review each item to determine its relevance.- Consider how each entry affects the overall income.---**Diagram/Graph Explanation:**Currently, there are no graphs or diagrams included in this task, only a format table and procedural instructions are provided. **Benson Company Income Statements for Year 2**Benson Company operates three segments. Income statements for the segments indicate that the company’s profitability could potentially improve if Segment A were eliminated.| Segment | A | B | C ||---------------------------------|---------|----------|----------|| **Sales** | $169,000| $238,000 | $247,000 || **Cost of goods sold** | (130,000)| (81,000)| (83,000) || **Sales commissions** | (21,000)| (23,000)| (31,000) || **Contribution margin** | 18,000 | 134,000 | 133,000 || **General fixed operating expenses** (allocation of president's salary) | (43,000)| (37,000)| (26,000) || **Advertising expense** (specific to individual divisions) | (5,000) | (14,000) | 0 || **Net income (loss)** | $(30,000)| $83,000 | $107,000 |**Required**a. Prepare a schedule of relevant sales and costs for Segment A.b. Prepare comparative income statements for the company as a whole under two alternatives: (1) retention of Segment A and (2) elimination of Segment A.> Complete this question by entering your answers in the tabs below.

An income statement assists business owners in determining if they can make a profit by raising…

Benson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions BENSON COMPANY Income Statements for Year 2 Contribution margin. General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) A $ 169,000 (130,000) (21,000) 18,000 (43,000) (5,000) $ (30,000) B $ 238,000 (81,000) (23,000) 134,000 (37,000) (14,000) $ 83,000 $ 247,000 (83,000) (31,000) 133,000 (26,000) 0 $ 107,000 Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A.

Benson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions BENSON COMPANY Income Statements for Year 2 Contribution margin. General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) A $ 169,000 (130,000) (21,000) 18,000 (43,000) (5,000) $ (30,000) B $ 238,000 (81,000) (23,000) 134,000 (37,000) (14,000) $ 83,000 $ 247,000 (83,000) (31,000) 133,000 (26,000) 0 $ 107,000 Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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