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5:57 Buckley Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales
5:57 Buckley Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold. Sales commissions d Contribution margin ces BUCKLEY COMPANY Income Statements for Year 2 B $ 330,000 (242,000) (30,000) $ 480,000 (184,000) (44,000) 252,000 General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) $ 500,000 (190,000) (44,000) 58,000 (92,000) 266,000 (92,000) (92,000) (6,000) (20,000) 0 $ (40,000) $ 140,000 $174,000 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 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 Rev. and Cost items for Segment A Sales
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