Zachary Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated.
ZACHARY COMPANY
Income Statements for Year
Segment A B C
Sales $ $ $
Cost of goods sold
Sales commissions
Contribution margin
General fixed operating expenses allocation of presidents salary
Advertising expense specific to individual divisions
Net income loss $ $ $
Required
Prepare a schedule of relevant sales and costs for Segment A
Prepare comparative income statements for the company as a whole under two alternatives: the retention of Segment A and the elimination of Segment A
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