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	A			B			C
Sales	$	164,000		$	250,000		$	259,000
Cost of goods sold		(123,000	)		(80,000	)		(84,000	)
Sales commissions		(17,000	)		(26,000	)		(29,000	)
Contribution margin		24,000			144,000			146,000
General fixed oper. exp. (allocation of presidents salary)		(39,000	)		(42,000	)		(25,000	)
Advertising expense (specific to individual divisions)		(5,000	)		(12,000	)		0
Net income	$	(20,000	)	$	90,000		$	121,000

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. PATTERSON COMPANY Comparative Income Statements for the Year 2014 Keep Eliminate Segment A Segment A Decision Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses Advertising expense Net Income