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Munoz Company operates three segments. Income statements for the segments Imply that profitability could be improved if Segment A were eliminated MUNOZ COMPANY Income Statements
Munoz Company operates three segments. Income statements for the segments Imply that profitability could be improved if Segment A were eliminated MUNOZ 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 (loss) B $ 170,000 $247,800 (122,000) (89, 800) (16,000) (29,808) 32,000 129,00 (41, eee) (41,eee) (6,eee (16,000) $ (15,eee) $ 72, eee C $250, eee (87,000) (27,eee) 136,000 (37,600) $ 99, eee 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
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