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Benson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. BENSON COMPANY Income Statements
Benson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. BENSON COMPANY Income Statements for Year 2 int Segment Sales Cost of goods sold Sales commissions ok Contribution margin General fixed operating expenses (allocation of president's salary). Advertising expense (specific to individual divisions) Net income (loss) A $ 163,000 B $243,000 C $263,000 (127,000) (89,000) (17,000) (78,000) (27,000) (26,000) 19,000 (44,000) (4,000) 127,000 159,000 (42,000) (39,000) (19,000) $ (29,000) $ 66,000 $120,000 ences 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. Sales Relevant Rev. and Cost items for Segment A Effect on income Regust & Required B > 10 Sales Cast of goods sold 163, Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary Advertising expense (specific to individual divisions) (44,000) 14,000 Net income (lassi $129,000 1324.00 10 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 (the retention of Segment and 21 the elimination of Segment A Complete this question by entering your answers in the tabs below. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retanton of Segment and (2) the elimination of Segment A BENSON COMPANY Comparative Income Statements for the Year 2 Keep Bay A CA Sales Coat of goode soid Sales commissione Conabution margin General ed operating expe Adverting exper Net income
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