Bryce Publishing Co. prepares income statements segmented by divisions, but the chief operating officer is not certain about how the company is actually performing. Financial

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Bryce Publishing Co. prepares income statements segmented by divisions, but the chief operating officer is not certain about how the company is actually performing. Financial data for the year follow

The Electronic Publishing Division appears to be floundering, and the CEO believes a closer look should be taken concerning its operating effectiveness. Additional data regarding this division follow:

The Electronic Division€™s accounting books are downloadable texts sold to auditors and controllers. The current data on these two markets follow:

Required:
1. Prepare an income statement segmented by products of the Electronic Division for 2016, including a column for the division as a whole.
2. Prepare an income statement, segmented by markets, for the accounting books of the Electronic Division.
3. Evaluate the accounting books of the Electronic Division. Should all books be kept, or should some books be discontinued?

Segments Textbook Electronic Division Division Company $360,000 840,000 $1,200,000 Total Less variable expenses: 64,000 422,000 $ 486,000 50,000 $ 72,000 464,000 $ 536,000 $288,000 376,000 $ 664,000 470,000 $258,000 (64,000) $ 194,000 Selling and administrative. . .. 8,000 42,000 30,000 440,000 Accounting Executive Management $260,000 $300,000 $280,000 Variable manufacturing expenses 0% 40% 50% Other variable expenses asa 5% percentage of sales Direct fixed expenses . 5% 5% .. $100,000 $150,000 $100,000 .. Sales Market Auditors Controllers $80,000 $220,000 Variable manufacturing expenses as 60% 60% Other variable expenses as a percentage of sales 5% 5% $30,000 50,000