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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
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 the Year 2018 Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income $169,000 $235,000 $260,000 (128,000) (88,000) (78,000) (20,000) (22,000) (26,000) 156,000 (38,000 (45,000) (36,000) 21,000 125,000 5,000 16,000 S (22,000) 64,000 $120,000 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
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