Need help with this practice problem Perez Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment Awere eliminated.PEREZ COMPANYIncome Statements for Year 2SegmentSales$ 162,000$245,000(91,000)$262,000(85,000)(24,000)153,000(28,000)Cost of goods sold(127,000)(18,000)17,000Sales commissionsContribution marginGeneral fixed operating expenses (allocation of president's salary)Advertising expense (specific to individual divisions)(31,000)123,000(37,000)(11,000)(39,000)(6,000)Net income (loss)$ (28,000)$ 75,000$125,000Requireda. Prepare a schedule of relevant sales and costs for Segment A.b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2)the elimination of Segment A.Complete this question by entering your answers in the tabs below.Required ARequired BPrepare a schedule of relevant sales and costs for Segment A.Relevant Rev. and Cost items for Segment AEffect on income$

General fixed operating expense is not relevant cost and therefore will not be included in…

Perez Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. PEREZ COMPANY Income Statements for Year 2 Segment Sales Cost of goods sold A B $ 162,000 $245,000 $262,000 (127,000) (18,000) 17,000 (91,000) (85,000) (24,000) Sales commissions (31,000) Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) 153,000 123,000 (37,000) (11,000) $ 75,000 (39,000) (28,000) (6,000) Net income (loss) $ (28,000) $125,000 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. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Effect on income $

Perez Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. PEREZ COMPANY Income Statements for Year 2 Segment Sales Cost of goods sold A B $ 162,000 $245,000 $262,000 (127,000) (18,000) 17,000 (91,000) (85,000) (24,000) Sales commissions (31,000) Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) 153,000 123,000 (37,000) (11,000) $ 75,000 (39,000) (28,000) (6,000) Net income (loss) $ (28,000) $125,000 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. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Effect on income $

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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