Patterson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. PATTERSON COMPANY Income Statements for the Year 2014 Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed oper. exp. (allocation of president's salary) Advertising expense (specific to individual divisions) Net income A B C $163,000 $237,000 $249,000 (126,000) (86,000) (75,000) (16,000) (27,000) (28,000) 21,000 124,000 146,000 (34,000) (36,000) (31,000) (6,000) (17,000) $ (19,000) $ 71,000 $ 115,000 Required: a. Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Sales Cost of goods sold Sales commissions Effect on income $ 0 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 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. PATTERSON COMPANY Comparative Income Statements for the Year 2014 Decision Sales Cost of goods sold Keep Seg. A Eliminate Seg. A Sales commissions Contribution margin $ 0 $ 0 Gen. fixed operating expenses Advertising expense Net Income $ 0 $ 0 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted