Exercise 6-14A Segment elimination decision Buckley Company operates three segments. Income statements for the segments imply that profitabil ity could be improved if Segment A were eliminated Relevant information for Special Decisions 283 LO 6-4 BUCKLEY COMPANY Income Statements for the Year 2018 B c Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed oper. exp. (allocation of president's salary) Advertising expense (specific to individual divisions) Net income $ 330,000 (242,000) (30,000) 58,000 (92,000) 16,000) $ (40,000) $480,000 (184,000) (44,000) 252,000 (92,000) (20,000) $140,000 $500,000 (190,000) (44,000) 266,000 (92.000) 0 $174,000 LO 6-4 Required a. Explain the effect on profitability if Segment A is eliminated. 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. elimination decision manent income statement for