**Instruction:**Complete this question by entering your answers in the tabs below.**Task:**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.**Table:**### BENSON COMPANY**Comparative Income Statements for Year 2**| | Keep Segment A | Eliminate Segment A ||--------------------------------|----------------|---------------------|| **Sales** | | || **Cost of goods sold** | | || **Sales commissions** | | || **Contribution margin** | | || **General fixed operating expenses** | | || **Advertising expense** | | || **Net income** | | |*Note: Input your answers for "Required A" and "Required B" in the designated tabs.* **Benson Company Segment Analysis**Benson Company operates three segments. Their income statements indicate that profitability might improve if Segment A were eliminated.**Income Statements for Year 2: Benson Company**| 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** | (43,000) | (37,000) | (26,000) || **Advertising Expense** | (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 scenarios: 1. Retention of Segment A 2. Elimination of Segment A**Instructions:**Complete this question by entering answers in the provided tabs.---This educational exercise encourages students to analyze financial data, fostering decision-making skills related to business operations and profitability improvement.

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Description: **Instruction:**Complete this question by entering your answers in the tabs below.**Task:**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.*

Business

Accounting

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) $ 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 C $ 247,000 (83,000) (31,000) 133,000 (26,000) 0 $ 107,000

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) $ 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 C $ 247,000 (83,000) (31,000) 133,000 (26,000) 0 $ 107,000

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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