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 the Year 2018
Segment	A				B				C
Sales	$	167,000			$	245,000			$	247,000
Cost of goods sold		(127,000	)			(76,000	)			(77,000	)
Sales commissions		(22,000	)			(24,000	)			(28,000	)
Contribution margin		18,000				145,000				142,000
General fixed operating expenses (allocation of presidents salary)		(34,000	)			(50,000	)			(33,000	)
Advertising expense (specific to individual divisions)		(6,000	)			(17,000	)			0
Net income	$	(22,000	)		$	78,000			$	109,000

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.

Prepare a schedule of relevant sales and costs for Segment A.

Relevant Rev. and Cost items for Segment A
Effect on income

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.

MUNOZ COMPANY
Comparative Income Statements for the Year 2018
Decision	Keep Seg. A	Eliminate Seg. A
Sales
Cost of goods sold
Sales commissions
Contribution margin
General fixed operating expenses
Advertising expense
Net Income