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

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Vernon Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. VERNON COMPANY Income Statenents for the Year 2018 Segment Sales $244,000 $ 171,000 (125,000) (23,000) (31,000) (29,000) 23,000 (35,000) (5,000) $ (17,000) $260,000 (78,000) Cost of goods sold Sales commissions (81,000) Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) 132,000 153,000 (32,000) (13,000) $ 87,000 (44,000) Net income $109,000 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 a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A +

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