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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

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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 Year 2 Sement Sales Cost of goods sold Sales comissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net Income (loss) $ 172,000 (129,000) (20.000) 23,880 (35,000) (4,000) $ (16,000) B $238,00 (73,000) (26,000) 139,000 (45,000) (14,000) $80,000 $247, e80 (87,809) (24,000) 136,000 (35,000) $101,00 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: the elimination of Segment A the retention of Segment A and (2) 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 Effect on income $ 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 Year 2 Seement 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 (loss) A $ 172,000 (129,000) (20,000) 23,000 (35,000) (4,690) $ (16,000) $238,000 (73,000) (26,000) 139,000 (45,000) (14,990) $ 80,000 $247,000 (87,080) (24.080) 136,000 (35,000) a 5101,000 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 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 Seo. A Sales Cost of goods sold Sales commissions Contribution margin $ 05 0 General fixed operating expenses Advertising expense Net Income 5 05

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