18 Exercise 6-14A (Algo) Segment elimination decision LO 6-4 Stuart Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. .34 points STUART COMPANY Income Statements for Year 2 eBook Segment Sales A Ask $168,000 (121,000) (18,000) $244,000 (89,000) (24,000) $250,000 (87,000) (30,000) Cost of goods sold Print Sales commissions References Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) 29,000 131,000 133,000 (41,000) (41,000) (41,000) (5,000) (17,000) $ 73,000 (17,000) Net income (loss) 92,000 Required a. Prepare a schedule of relevant sales and costs for Seament A 18 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. 4.34 points Complete this question by entering your answers in the tabs below. eBook Required A Required B Ask Prepare a schedule of relevant sales and costs for Segment A. Print References Relevant Rev. and Cost items for Segment A $ 0 Effect on income A 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. STUART COMPANY Comparative Income Statements for the Year 2 Decision Keep Seg. A Eliminate Seg. A Sales Cost of goods sold Sales commissions Contribution margin S 0 General fixed operating expenses Advertising expense Net Income 0 S 0