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

CAMPBELL COMPANY
Income Statements for Year 2
Segment	A				B				C
Sales	$	164,000			$	245,000			$	245,000
Cost of goods sold		(130,000	)			(81,000	)			(75,000	)
Sales commissions		(18,000	)			(23,000	)			(24,000	)
Contribution margin		16,000				141,000				146,000
General fixed operating expenses (allocation of presidents salary)		(39,000	)			(39,000	)			(33,000	)
Advertising expense (specific to individual divisions)		(5,000	)			(15,000	)			0
Net income (loss)	$	(28,000	)		$	87,000			$	113,000

Required

1. Prepare a schedule of relevant sales and costs for Segment A.

2. 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.