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6 Munoz Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. kipped Print
6 Munoz Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. kipped Print Segnent Sales Cost of goods sold Sales commissions Contribution margin MUNOZ COMPANY Income Statements for Year 2 A C $167,000 (122,000) (17,000) $246,000 (91,000) $248,000 (90,000) (31,000) (30,000) 28,000 124,000 128,000 (42,000) (50,000) (4,000) (20,000) (41,000) 0 $ (18,000) $ 54,000 $87,000 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. Check 6 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) t the elimination of Segment A. Skipped Complete this question by entering your answers in the tabs below. Print Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Sales Relevant Rev. and Cost items for Segment A Effect on income $ 0 < Required A Required B > Print Complete this question by entering your answers in the tabs below. Required A Required 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. MUNOZ COMPANY Comparative Income Statements for the Year 2 Decision Sales: Keep Seg. A Eliminate Seg. A Cost of goods sold Sales commissions Contribution margin $ 0 $ 0 General fixed operating expenses Advertising expense Net Income $ 0 $
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