Western-Southern Publishing Co. prepares income statements segmented by divisions, but the chief operating officer is not certain about how the company is actually performing. Financial data for the year follow:

The Electronic Publishing Division appears to be floundering, and the CEO believes a closer look should be taken concerning its operating effectiveness. Additional data regarding this division follow:

The Electronic Division's accounting books are downloadable texts sold to auditors and controllers. The current data on these two markets follow:

Required:
1. Prepare an income statement segmented by products of the Electronic Division for 2013, including a column for the division as a whole.
2. Prepare an income statement, segmented by markets, for the accounting books of the Electronic Division.
3. Evaluate the accounting books of the Electronic Division. Should all books be kept, or should some books be discontinued?

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Segments Textbook Electronic Total Division i Company Sales....S360,000 840,000 $1200,000 Less variable expenses: $ 64,000 $422,000 486.000 8,000 42,000 50,000 $ 72,000 $464,000 536,000 $288,000 376,000 664,000 440,000470.000 $258,000 $(64,000) S 194,000 Manufacturing. Selling and administrative Totalc Less direct fixed expenses. Accounting Executive Management $300,000 $280,000 $260,000 Saies... Variable manufacturing expenses as a percentage of sales 40% 50% Other variable expenses as a percentage of sales 5% 5% 5% $100,000 Direct fixed expenses ...$100,000 $150,000 Sales Market Auditors Controllers $80,000 $220,000 Variable manufacturing expenses as a percentage of sales 60% 60% Other variable expenses as a percentage of sales 5% 5% $30,000 $50,000