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Jordan Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. JORDAN COMPANY Income Statements

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

JORDAN COMPANY
Income Statements for Year 2
Segment A B C
Sales $ 167,000 $ 253,000 $ 253,000
Cost of goods sold (124,000) (82,000) (92,000)
Sales commissions (21,000) (30,000) (29,000)
Contribution margin 22,000 141,000 132,000
General fixed operating expenses (allocation of presidents salary) (43,000) (51,000) (31,000)
Advertising expense (specific to individual divisions) (4,000) (16,000) 0
Net income (loss) $ (25,000) $ 74,000 $ 101,000

Required

  1. Prepare a schedule of relevant sales and costs for Segment A.
  2. 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.
image text in transcribed Jordan Company operates three segments. Income statements for the segments imply that profitability could be improved if Segmer A were eliminated. 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. Prepare a schedule of relevant sales and costs for Segment A

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