Segment elimination: Segment can be referred to as a part of a company which is similar to a department or a division. When the segment of a company is not performing well, the management is required to eliminate it. So, the management must not only analyze the net income or net loss or its contribution to overhead , but it must also analyze the expenses that are avoidable and unavoidable for that particular segment. To compute and prepare: The departmental income statements for the company under two scenarios, (1) and (2).

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Chapter 23, Problem 10E

To determine

Segment elimination:

Segment can be referred to as a part of a company which is similar to a department or a division. When the segment of a company is not performing well, the management is required to eliminate it. So, the management must not only analyze the net income or net loss or its contribution to overhead, but it must also analyze the expenses that are avoidable and unavoidable for that particular segment.

To compute and prepare: The departmental income statements for the company under two scenarios, (1) and (2).

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