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 the Year 2018 Segment A B C Sales $ 165,000 $ 239,000 $ 247,000 Cost of goods sold (127,000 ) (78,000 ) (81,000 ) Sales commissions (17,000 ) (24,000 ) (25,000 ) Contribution margin 21,000 137,000 141,000 General fixed operating expenses (allocation of presidents salary) (38,000 ) (33,000 ) (43,000 ) Advertising expense (specific to individual divisions) (4,000 ) (15,000 ) 0 Net income $ (21,000 ) $ 89,000 $ 98,000 Required Prepare a schedule of relevant sales and costs for Segment A. 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 Relevant Rev. and Cost items for Segment A Effect on income Complete this question by entering your answers in the tabs below. Required ARequired 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. FINCH COMPANY Comparative Income Statements for the Year 2018 Decision Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses Advertising expense Net Income Keep Seg. A Eliminate Seg. A