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Zachary Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. home here cer 2010

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Zachary Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. home here cer 2010 ZACHARY COMPANY Segment Income Statements for the Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president Advertising expense (specifie to individual divisions Net income 1130,000 $ 167,000 $239,000 (130,000) (81,000) (22,000) (28,000) 15,000 130,000 (41,000) (45,000) (6,000) (12,000) $ (32,000) $ 73,000 $250,000 (84,000) 28,000) 138,000 (36,000) ation of president's salary) R ( $622,000 $102,000 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 Effect on income y Net income u runs Bay) pecific to individual divisions) 138,0 0 (41,000) (45,000) (6,000) (12,000) $ (32,000) $ 73,000 (36,0 $102,0 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 Segr the elimination of Segment A. Complete this question by entering your answers in the tabs below. Required A Required 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. ZACHARY COMPANY Comparative Income Statements for the Year 2018 Decision Keep Seg. A Eliminate Seg. A Sales Cost of goods sold Sales commissions Contribution margin 0 $ General fixed operating expenses Advertising expense Net Income $ 0 $ 0

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