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E13-4 Buckley Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Buckley Company Income

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E13-4 Buckley Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Buckley Company Income Statements for the Year 2018 Segment A B C Sales $330,000 $480,00 $500,00 0 0 Cost of goods sold (242,000) (184,00 (190,000 0) Sales commissions (30,000) (44,000) (44,000) Contribution margin 58,000 252,000 266,000 General fixed oper. exp. (allocation of president's salary) (92,000) (92,000) (92,000) Advertising expense (specific to individual divisions) (6,000) (20,000) O Net income $ (40,000) $40,000 $174,00 0 Required: a. Explain the effect on profitability if Segment A is eliminated. Relevant Revenue and Costs for Segment A

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