Walton Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. WALTON COMPANY Income Statements for Year 2 Segment Sales A B C $ 165,000 $243,000 $251,000 Cost of goods sold (124,000) (77,000) (86,000) Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) (16,000) (28,000) (29,000) 25,000 138,000 136,000 (42,000) (45,000) (26,000) (6,000) (20,000) 0 $ (23,000) $ 73,000 $110,000 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. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Sales Relevant Rev. and Cost items for Segment A Effect on income 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. WALTON COMPANY Decision Comparative Income Statements for the Year 2 Keep Seg. A Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses Advertising expense Net Income Eliminate Seg. A