Solomon Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. SOLOMON COMPANY Income Statements for Year 2 Segment Sales A B Cost of goods sold $170,000 (124,000) $248,000 C $257,000 (79,000) (95,000) Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) (37,000) (44,000) (20,000) $ (21,000) $82,000 $ 90,000 (20,000) (30,000) (28,000) 26,000 139,000 134,000 (41,000) (6,000) 0 Required: JFZ Note: This question is very similar to a Connect HW assign (and the related Prof. Zeigler video discussion). 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. 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 > wwwwww Prepare comparative income statements for the company as a whole under two alterna and (2) the elimination of Segment A. SOLOMON COMPANY Comparative Income Statements for the Year 2 Decision Keep Seg. A Eliminate Seg. A Sales Cost of goods sold Sales commissions Contribution margin $ 0 $ 0 General fixed operating expenses Advertising expense Net Income $ 0 $ 0 < Required A Required B >