Exercise 6-14A Segment elimination decision LO 6-4 Patterson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. PATTERSON COMPANY Income Statements for the Year 2014 Segment 168,000 $244,000 $254,000 Sales Cost of goods sold (128,000) (86,000) (86,000) Sales commissions (22,000) (22,000) (24,000) Contribution margin 18,000 136,000 144,000 General fixed oper. exp. (allocation of president's salary) (42,000) (40,000) (32,000) Advertising expense (specific to individual divisions) (6,000) (19,000) (30,000) 77,000 $112,000 Net income Required: a. Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Effect on income