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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

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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 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 (105) $ 162,000 (129,000) (23,680) 10,000 (42,000) (4,600 $ (36,000) B $242, eee (87, eee) (23, eee) 132, eee (49, eee) (18,eee) $ 65, eee $259,880 (93,880) (26,880) 140,000 (35,880) @ $105,888 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 Segment A and (2) the elimination of Segment A. MUNOZ COMPANY Comparative Income Statements for the Year 2 Decision Keep Seg. A Eliminate Seg. A Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses Advertising expense S S S 0 S 0 Net Income 0 0

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