Stuart Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated.

STUART COMPANY
Income Statements for the Year 2018
Segment	A				B				C
Sales	$	167,000			$	243,000			$	255,000
Cost of goods sold		(122,000	)			(82,000	)			(83,000	)
Sales commissions		(18,000	)			(28,000	)			(29,000	)
Contribution margin		27,000				133,000				143,000
General fixed operating expenses (allocation of presidents salary)		(44,000	)			(44,000	)			(35,000	)
Advertising expense (specific to individual divisions)		(5,000	)			(10,000	)			0
Net income	$	(22,000	)		$	79,000			$	108,000

Required

1. Prepare a schedule of relevant sales and costs for Segment A.

2. 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.