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Perez Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. PERES COMPANY Income Statements

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Perez Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. PERES COMPANY Income Statements for Year 2 Segment Sales Coat of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net Income (los) $ 163,000 (130,000) (21,000) 12.000 141.000) 2.000) 5 (32,000) D $252,000 (80,000) 32,000) 132,000 (49,000) (11.000) $ 72.000 $258,000 (91,000) (30,000) 137,000 (42,000) 0 $ 95,000 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 Required a. Prepare a schedule of relevant sales and costs for Segment b. Prepare comparative income statements for the company as the elimination of Segment A. Complete this question by entering your answers in the ta Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Sales Effect on income Required A

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