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Exercise 6-14A (Algo) Segment elimination decision LO 6-4 Campbell Company operates three segments. Income statements for the segments imply that profitability could be improved
Exercise 6-14A (Algo) Segment elimination decision LO 6-4 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 B $164,000 $ 240,000 $264,000 Cost of goods sold (123,000) (89,000) (85,000) Sales commissions) Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) (21,000) (29,000) (32,000) 20,000 122,000 147,000 (35,000) (46,000) (33,000) (6,000) (14,000) Net income (loss) $ (21,000) $ 62,000 $ 114,000 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 Branama hadide of lauantaine and arte for Comment A Dr 4 of 6 Next > 4 s 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 retentio the elimination of Segment A Complete this question by entering your answers in the tabs below. eBook Required A Required B Print Prepare a schedule of relevant sales and costs for Segment A. Relevant Revenue and Cost Items for Segment A Effect on income < Required A Required B > 4 Complete this question by entering your answers in the tabs below. 5. oints eBook Print 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 Year 2 Decision Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses Advertising expense Not income Keep Segment A Eliminate Segment A
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