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STUART COMPANY Income Statements for Year 2 Segment Sales Cost of goods sold Sales comunissions Contribution margin General fixed operating expenses (allocation of president's salary)

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STUART COMPANY Income Statements for Year 2 Segment Sales Cost of goods sold Sales comunissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) $ 163,000 (124, 000) (19,000) 20,000 (34, 000) (3, 000) $ (17,000) B $245,000 (84, 000) (29,000) 132,000 (37,000) (10,000) $ 85,000 $257,000 (86,000) (23, 000) 148,000 (31, 000) $117,000 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 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. STUART 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

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