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er Six i Savod Fanning Company operates three segments. Income statements for the segments imply that profitability could be improved if Sega A were
er Six i Savod Fanning Company operates three segments. Income statements for the segments imply that profitability could be improved if Sega A were eliminated. FANNING COMPANY Incone Statements for Year 2 Sales commissions Segsent Sales Cost of goods sold Contribution margin. $ 164,000 $247,000 (123,000) (18,000) $249,000 (89,000) (81,000) (26,000) (31,000) 23,000 132,000 137,000 General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) (43,000) (47,000) (36,000) (5,000) (19,000) B Net income (loss) $ (25,000) $ 66,000 $101,000 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 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.
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