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Problem: Module 6 Textbook Problem 7 Learning Objective: 6-4 Make appropriate segment elimination decisions Gibson Company operates three segments. Income statements for the segments imply that profitability could be improved If Segment A were eliminated. GIBSON 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) $ 169,000 (126,000) (19,000) 24,000 (35,000) (4.000) $ (15,000) B $246,000 (87,000) (30,000) 129,000 (45,000) (12,000) $ 72,000 $264,000 (81,000) (26,000) 157,000 (33,000) 0 $124,000 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Requires A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Sales $ 169,000 Cost of goods sold (126,000) Sales commissions (19,000) Advertising expense (4,000) Effect on income 20,000 Required A Required B >