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Patterson Company operates three segments ments for the segments imply that profitability ncome state could be improved if Segment A were eliminated. PATTERSON COMPANY Income
Patterson Company operates three segments ments for the segments imply that profitability ncome state could be improved if Segment A were eliminated. PATTERSON COMPANY Income Statements for the Year 2014 Segment Sales 164,000 $248,000 $257,000 Cost of goods sold (131,000) (85,000) (82,000 Sales commissions 22.000 (27,000 (27,000 Contribution margin 11,000 136,000 148,000 General fixed oper. exp. (allocation of president's salary) (43,000 (49,000 (29,000 Advertising expense (specific to individual divisions (3,000 (17,000 (35,000) 70,000 $119,000 Net income Required: a. Prepare a schedule of relevant sales and costs for Segment A. elevant Rev. and Cost items for Segment A Effect on income
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