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

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Perez Company operates three segments. Income statements for the segments Imply that profitability could be improved if Segment were eliminated. PEREZ COMPANY Income Statements for Year 2 Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net Income (less) A $ 163,00 (131,000) 21,000) 11,000 (25,000) (6000) 5 (10,000) $240,000 (87,000) (26000 135,000 (34,000) (10,000) $91,000 $257,000 (89,000) (29.000) 139.000 (44,000) $ 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 Complete this question by entering your answers in the tabs below. Required A Required B 7 of 10 Next > 3.) 9, 9.00 Required o. 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 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 Sales 5 0 Effect on income Required B > Complete this question by entering your answers in the tabs below. Required A Reghired B Prepare comparative Income statements for the company as a whole under two alternatives: (1) the retention of Segment and (2) the elimination of Sogment 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 $ ols 0 General fixed operating expenses Advertising expense S Not income 0 $

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