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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

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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 for Year 2 Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specifie to individual divisions) Net income (los) $ 163,000 (127,000) I (23,000) 13,000 (44,000) 15,000) $ (36,000) $253,000 (85,000) 123,000) 145,000 (34,000) (26,000) $ 95,000 $250,000 (75,000) (28.000) 147.000 (25,000) O $122,000 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. 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 Sales Effect on income (Required A Required B > 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. CAMPBELL COMPANY Comparative Income Statements for the Year 2 Decision Keep Seg. A Eliminate Sog. A Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses Advertising expense Net Income

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