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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 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. PEREZ 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 specifie to individual divisions) Het income (loon $ 167,000 $241,000 $255,000 (128,000) (81.000) (83,000) (21,000) (32.000) (24,000). 18,000 128,000 148,000 (37,000) (39,000) (33,000) 14.000) (10,000) 0 $ (23,000) $ 71,000 $115,000 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 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 Required A Required B > 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 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. PEREZ COMPANY Comparative Income Statements for the Year 2 Decision Keep Seg. A Eliminate Seg. A Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses Advertising expense Net Income

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