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Help Fanning Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. FANNING COMPANY Income

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Fanning Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. FANNING COMPANY Income Statements for Year 2 Segment Sales $ 171, 680 5239, 686 $ 263, 809 Cost of goods sold (122,080) (75, 808) Sales commissions (26 692) Contribution margin 136,ege 164, 360 General fixed operating expenses (allocation of president's salary) 42 , Bee (49, Bee Advertising expense (specific to individual divisions) Net income (loss) $ (16, 680) $ 71,680 $127, egg 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 B Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of = and (2) the elimination of Segment A. FANNING COMPANY Comparative Income Statements for the Year 2 Decision Keep Seg. A Eliminate Seg. Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses Advertising expense Net Income

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