Income Statements for Year 2SegmentSalesAC$ 164,000(128,000)(22,000)14,000$241,000(81,000)(28,000)132,000(35,000)(14,000)$ 83,000$246,000(95,000)(22,000)129,000(30,000)Cost of goods soldSales commissionsContribution marginGeneral fixed operating expenses (allocation of president's salary)Advertising expense (specific to individual divisions)Net income (loss)(41,000)(5,000)$ (32,000)$ 99,000Requireda. 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

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Segment B $ 164,000 (128,000) (22,000) $241,000 (81,000) (28,000) $246,000 (95,000) (22,000) Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) 14,000 (41,000) (5,000) $ (32,000) 132,000 (35,000) (14,000) $ 83,000 129,000 (30,000) Net income (loss) $ 99,000 equired Prepare a schedule of relevant sales and costs for Segment A. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and the elimination of Segment A.

Segment B $ 164,000 (128,000) (22,000) $241,000 (81,000) (28,000) $246,000 (95,000) (22,000) Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) 14,000 (41,000) (5,000) $ (32,000) 132,000 (35,000) (14,000) $ 83,000 129,000 (30,000) Net income (loss) $ 99,000 equired Prepare a schedule of relevant sales and costs for Segment A. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and 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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