Finch Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. FINCH COMPANY Income Statements for Year 2 Segment Sales 166,000 (130,000) (18,000) $240,000 (89,000) (26,000) 125,000 (43,000) (15,000) $257,000 (94,000) (24,000) 139,000 (43,000) Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) 18,000 (43,000) (6,000) 96,000 Net income (loss) (31,000) 67,000 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: () the retention of Segment A and (2) the elimination of Segment A Complete this question by entering your answers in the tabs below. Required B Required A Prepare a schedule of relevant sales and costs for Segment A Relevant Rev. and Cost items for Segment A Effect on income Thornton Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,200 containers follows. Unit-level materials 5,700 Unit-level labor 6,900 Unit-level overhead 3,600 8,700 Product-level costs* Allocated facility-level costs 28,000 One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Thornton for $2.90 each Required a. Calculate the total relevant cost. Should Thornton continue to make the containers? b. Thornton could lease the space it currently uses in the manufacturing process. If leasing would produce $10,900 per month, calculate the total avoidable costs. Should Thornton continue to make the containers? a. Total relevant cost Should Thornton continue to make the containers? b. Total avoidable cost Should Thornton continue to make the containers