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Franklin Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated FRANKLIN COMPANY Income Statement

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Franklin Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated FRANKLIN COMPANY Income Statement for Year 2 Sales Cost of goods sold Sales condicions Contribution margin General Fixed operating expenses (allocation of president's salary) Advertising expense (specific to fodividual divisions) Het income (los) A $ 170,000 5254,000 (123,000) (14,000 (1,000) K25,00) 26,00 145.000 (19,000 (46,000) 000) (12,000) $ (16,000) $ 89,000 $245,000 (94.000) (28.000 123,00 (38.00) 0 $ 85,900 Required 6. 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:(0the retention of Seciment A and (2) the elimination of Segment A Complete this question by entering your answers in the tabs below. Required A Tequired Prepare a schedule of relevant sales and costs for Segment A Relevant Rev. and Cost items for Segment A 121,000) 125 26,000 145,000 (29,000 (44,000) (2000 (12,0) $(10,000) $ 89,000 Sales Comissions Contribution margin General fixed operating expenses allocation of president's salary) Advertising expense (specific to individual divisions) Net Incone (loss) 12,00) 123,00 (38,000) $ 85,000 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 Required Prepare a schedule of relevant sales and costs for Segment A Rolevant Rev. and Cost items for Segment A Elled onicom Required > 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 by Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Seament A. FRANKUIN COMPANY Comparative Income statement for the Year 2 Decision Keep Seg. A Eliminate Seg. A Sales Cost of goods sold Sales commissions Contribution margin Generalfoed operating expongos Advertising expertise Nico

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