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4 Finch Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. ts Segment
4 Finch Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. ts Segment Sales Cost of goods sold: eBook Sales commissions Contribution margin Pont FINCH COMPANY Income Statements for Year 2 A $171,000 $ 237,000 $260,000 (129,000) (78,000) (82,000) (19,000) (23,000) (25,000) 23,000 (42,000) (6,000) $ (25,000) 136,000 (36,000) 153,000 (30,000) (11,000) $ 89,000 B $ 123,000 General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net Income (loss) 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 Revenue and Cost items for Segment A
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