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i dont underatnd how to find part b. Stuart Company operates three segments. Income statements for the segments imply that profitability could be improved I
i dont underatnd how to find part b. Stuart Company operates three segments. Income statements for the segments imply that profitability could be improved I Segment A were eliminated STUART COMPANY Income Statements for the Year 2018 Sales Cost of goods told Sales commissions Contribution martin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income 5 16.0 (130,000) (7O 17,000 (44,000) (5,000 $2,000) $247,000 (5,000 (25,000 137,000 (44,000) (14,080 $ 79,000 (92) (30,000 137,000 (25,000) $112.000 Required o. 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 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required Answer is complete but not entirely correct. 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 Segment A and (2) the elimination of Segment A. STUART COMPANY Comparative Income Statements for the Year 2018 Decision Keep Seg. A Eliminate Seg. A Sales S 164 000 $ 0 X Cost of goods sold (130,000) 0 X Sales commissions (17.000) 0X Contribution margin 17,000 S 0 General fixed operating expenses (44,000) (44,000) Advertising expense (5,000) 0 % Net Income (32,000) IS (44,000)
i dont underatnd how to find part b.
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