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Hello, I need some help. Thank you! Star Destroyer Company operates on three different planets in the galaxy. They are recelving reports that operations may
Hello, I need some help. Thank you! Star Destroyer Company operates on three different planets in the galaxy. They are recelving reports that operations may need to cease on Alderaan soon. Income statements for these planets imply that profitability could be improved If operations in Alderaan were eliminated, STAR DESTROYER COMPANY Income Statements for Year 2 gnt Alderaan satu Tatooine Salon 3 169,000 $239,000 $257,000 Cont of good old (122,000) (74,000) (81,000) Sales comisions (26.000) 23,000) (27.000) Contribution margin 31,000 142,000 149,000 General fixed operating expenses allocation of president's salary) (37.000) (44,000 (27,000) Advertising expense (npeaitle to individual planeta) 6.000 (16,000) Net Income (lon) (12,000) $ 82,000 $122.000 Required a. Prepare a schedule of relevant sales and costs for operations in Alderaan. b. Prepare comparative Income statements for the company as a whole under two alternatives: (1) the retention of operations in Alderaan and (2) the elimination of operations in Alderaan Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of relevant sales and costs for Alderaan Relevant Rev. and Cont items for Alderaan Bales Effect on Income Complete this question by entering your answers in the tabs below. Required a Required B Prepare comparative Income statements for the company as a whole under two alternatives: (1) the retention of Alderaan and (2) the elimination of Alderaan. STAR DESTROYER COMPANY Comparative Income Statements for the Year 2 Decision Keep Alderaan Eliminate Alderaan Sales S OS 0 Cost of goods sold Sales commissions Contribution margin General forced operating expenses Advertising expense Net Income OS 0
Hello, I need some help. Thank you!
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