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Finch Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. PINCH COMPANY Income
Finch Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. PINCH COMPANY Income Statements for Year 2 Segment B Sales Sales commissions. Cost of goods sold Contribution margin $ 165,000 (124,000) $242,000 C $254,000 (87,000) (88,000) (18,000) (31,000) (30,000) 23,000 124,000 136,000 General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) (41,000) (5,000) (51,000) (11,000) (25,000) 0 Net income (loss) $ (23,000) $ 62,000 $111,000 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 a schedule of relevant sales and costs for Segment A. Sales Relevant Rev. and Cost items for Segment A Effect on income Required A Required B >
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