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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. PEREZ COMPANY Segment
Perez Company operates three segments. Income statements for the segments imply that profitability could be Improved if Segment A were eliminated. PEREZ COMPANY Segment Sales Cost of goods sold Sales commissions Contribution margin Income Statements for Year 2 B $ 170,000 $245,000 (125,000) C $258,000 (90,000) (80,000 (16,000) (25,000) (30,000 29,000 130,000 148,000 (35,000) (3,000) (37,000) (37,000 (14,000) General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) $ (9,000) $ 79,000 $111,000 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. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Effect on income S Required A Required B >
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