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

VERNON COMPANY
Income Statements for the Year 2018
Segment	A				B				C
Sales	$	162,000			$	249,000			$	263,000
Cost of goods sold		(124,000	)			(90,000	)			(79,000	)
Sales commissions		(21,000	)			(24,000	)			(24,000	)
Contribution margin		17,000				135,000				160,000
General fixed operating expenses (allocation of presidents salary)		(40,000	)			(41,000	)			(37,000	)
Advertising expense (specific to individual divisions)		(7,000	)			(19,000	)			0
Net income	$	(30,000	)		$	75,000			$	123,000

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.