Gibson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. GIBSON COMPANY Income Statements for Year 2 Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net Income (lons) $ 170,000 (126,000) (19,000) 25,000 (38,000) 16,000) $ (19,000) $240,000 (73,000) (26,000) 141,000 (51,000) (12,000) $ 78,000 $253,000 (86,000) (26,000) 141,000 (28,000) 0 $113,000 5 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 Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Sales Effect on income