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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 Statements

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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 Statements for the Year 2018 Segment Sales $165,000 (126,000) (22,000) 17,000 (43,000) (6,000) (16,000) $ (32,000) $ 84,000 $242,000 (76,000) (26,000) 140,000 (40,000) $251,000 (90,000) (28,000) 133,000 (39,000) Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) 0 $ 94,000 Net income 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. 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 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 > Required B 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 8 Required 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. FRANKLIN COMPANY Comparative Income Statements for the Year 2018 Eliminate Seg. A Keep Seg. A Decision Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses Advertising expense Net Income Rquired Required A

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