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A Solomon Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. SOLOMON COMPANY Income

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A Solomon Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. SOLOMON COMPANY Income Statements for the Year 2018 Segment Sales $ 162,089 $254,000 $252,000 Cost of goods sold (123,000) (91,099) (93,000) Sales commissions (22,008) (29,000) (23,000) Contribution margin 17,000 134,000 136,000 General fixed operating expenses (allocation of president's (42,000) (43,000) (40,000) salary) Advertising expense (specific to individual divisions) (5,000) (16,000) Net income 5 (30,000) $ 75,000 S 96,000 Required o. 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 Seament 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 Effect on income Required B > Solomon Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated SOLOMON COMPANY Incone Statenents for the Year 2018 Seement Sales $ 162,000 $254,090 Cost of goods sold (123,109) (91,600) Sales commissions (22,980) (29,880) Contribution margin 17,eee 134,60 General fixed operating expenses (allocation of president's salary) (42,009) (43,890) Advertising expense (specific to individual divisions) (5,000) (16,eee) Net income $ (30,809) $ 75,000 $252,809 (93,882) (23,680) 136,080 (48,289) $ 96,000 / Requlred 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 altemat the elimination of Segment A S the retention of Segment A and Complete this question by entering your answers in the tabs mimo romance at the 98 Required A Required B NE alternatives: (1) the retention of Segment A Prepare comparative income statements for the company and (2) the elimination of Segment A mm SOLOMON COMPANY Comparative Income Statements for the Year 2011 Decision Keep Seg. A Elimin Sales Cost of goods sold Ses commissions Contribution margin Generalforced operating penses and Advertising Recured A

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